On January 1, 2016, Kendall Inc. began construction of an automated cattle feeder system. The...
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On January 1, 2016, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2017, Expenditures on the project were as follows January 1, 2016 September 1, 2016 December 31, 2016 March 31, 2017 September 30, 2017 S200,000 $300,000 S300,000 S300,000 $200,000 Kendall borrowed S750,000 on a construction loan at 12% interest on January 1, 2016. This loan was outstanding throughout the construction period. The company had S4,500,000 in 9% bonds payable outstanding in 2016 and 2017. Required a. Compute Average accumulated expenditures for 2016 and 2017. b. Determine interest capitalized for 2016 and 2017. c. Prepare al neccessary journal entries relating to interest capitalization and interest expenses in 2016 and 2017
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