Exercise 11-11 Capitalizing interest (LO 11-2)Kobe Company began

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School
Western Governors University **We aren't endorsed by this school
Course
ACCOUNTING FINANCIAL
Subject
Accounting
Date
Nov 17, 2023
Pages
1
Uploaded by PresidentBraverySkunk32 on coursehero.com
Exercise 11-11 Capitalizing interest (LO 11-2) Kobe Company began constructing a building for its own use in February 20X1. During 20X1, Kobe incurred interest of $70,000 on specific construction debt and $15,000 on other borrowings. Interest computed on the weighted-average amount of accumulated expenditures for the building during 20X1 was $60,000. Required: 1a. What amount of interest should Kobe capitalize? 1b. Prepare the journal entry to record payment of the interest. 2. If interest computed on the weighted-average amount of accumulated expenditures for the building during 20X1 was instead $90,000, what amount of interest should Kobe capitalize? What amount of interest should Kobe capitalize? 1b. Prepare the journal entry to record payment of the interest. If interest computed on the weighted-average amount of accumulated expenditures for the building during 20X1 was instead $90,000, what amount of interest should Kobe capitalize? amount of interest capitalized by Kobe = NoTransactionGeneral JournalDebitCredit11No Transaction Recorded
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