Purcell Corporation engaged Morse, Inc. to design and construct a complete modernization of Purcell's manufacturing facility. Construction was begun on January 1, 2019 and was completed on February 28, 2020. Purcell made the following payments to Morse, Inc. during the construction period: Date Payment June 1, 2019 $3,600,000 August 31, 2019 5,400,000 December 31, 2019 4,600,000 February 28, 2020 100,000 To help specifically to finance the construction, Purcell issued $3,200,000 of 10-year, 6% bonds payable at par on January 1, 2019, with interest payable annually starting January 1, 2020. In addition to the 6% bonds payable, the only debt outstanding during 2019 was a $12,000,000, 4% note payable dated January 1, 2015 and due January 1, 2025, with interest payable annually on January 1. For interest capitalization purposes, Purcell uses the specific interest method.

Required:

a. Calculate the following. Round all computations to the nearest dollar.

i. Interest revenue earned by Dobbs in 2016 (3 marks)
ii. Weighted-average accumulated expenditures (4 marks)
iii. Avoidable interest (3 marks) iv. Actual interest (7 marks)
iv. Total interest cost capitalized during 2016. (3 marks)

b. Prepare the December 31, 2016 journal entries needed on the books of Dobbs Corporation.

What is credit and debit in accounting

Eagle sporting goods reported the following data at july ​31, 2016​, with amounts adapted in​ thousands: ​(click the icon to view the income​ statement.) ​(click the icon to view the statement of retained​ earnings.) ​(click the icon to view the balance​ sheet.) 1. compute eagle​'s net working capital. 2. compute eagle​'s current ratio. round to two decimal places. 3. compute eagle​'s debt ratio. round to two decimal places. do these values and ratios look​ strong, weak or​ middle-of-the-road? 1. compute eagle​'s net working capital. total current assets - total current liabilities = net working capital 99400 - 30000 = 69400 2. compute eagle​'s current ratio. ​(round answer to two decimal​ places.) total current assets / total current liabilities = current ratio 99400 / 30000 = 3.31 3. compute eagle​'s debt ratio. ​(round answer to two decimal​ places.) total liabilities / total assets = debt ratio 65000 / 130000 = 0.50 do these ratio values and ratios look​ strong, weak or​ middle-of-the-road? net working capital is ▾ . this means ▾ current assets exceed current liabilities current liabilities exceed current assets and is a ▾ negative positive sign. eagle​'s current ratio is considered ▾ middle-of-the-road. strong. weak. eagle​'s debt ratio is considered ▾ middle-of-the-road. strong. weak. choose from any list or enter any number in the input fields and then continue to the next question.

Data for hermann corporation are shown below: per unit percent of sales selling price $ 125 100 % variable expenses 80 64 contribution margin $ 45 36 % fixed expenses are $85,000 per month and the company is selling 2,700 units per month. required: 1-a. how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,000 and monthly sales increase by $20,000? 1-b. should the advertising budget be increased?