Hi guys! I had a typographical error in the illustrative example. For 9/30 average expenditure, 8.8M x 3/12 is 2,200,000 and NOT 2,125,000. Thus the average expenditure is 18,300,000 making the capitalized interest for general borrowings 144,040. Total capitalized interest is 2,184,040 and total interest expensed is 2,735,960. Thanks and Sorry for the mistake.
Sir, can you please include in the tutorial about the journal entries necessary to record on the given problem? Thankyou Sir,just curious about how can you record it.
Kasi yung una mong pagkukuhaan ng funds to incur the expenditures ay galing sa specific borrowing. Only when hindi sufficient ang specific borrowing nagkakaroon ng getting the funds from the general borrowings. Thats why binabawas natin.
240,000+160,000+240,000 equals 640,000 divide 6M equals 10.67 Rate 400k x 12/12 = 400k 1M x 9/12 = 750,000 1.2M x 6/12 = 600k 1M x 3/12 = 250k 400k+750k+600k+250k equals 2M x 10.67 equals 213,400 The answer is B.
Hi sir! Sir paano po if general borrowing po is obtained february 1. Sa pagkuha po ng ng actual interest incurred is based on 11/12? Pero sa pagkuha po ng capitalization rate is always annual? 12/12?
Not included in your video sir, pero tanong lang po. What is estimated cost of equity capital . Ini-ignore lang puba sya sa computation of borrowing cost?
Pano po ba malalaman kung "General" or "specific" yung isang cost? Minsan mo kasi walang nakalagay na "generally" or "specifically" kaya nakakalito po hehe. Tulad nalang po nito "borrowed 1M on a 5% Notes payable to finance a new warehouse which the entity is constructing for own use". Wala po siyang "generally" or "specifically". Pano po ba agad madaling ma-identify? Thanks po in advance!
Capitalization Rate = 10.67% Average Expenditures financed by general borrowings= 2,000,000 Since sa given po general borrowings lang kaya 2,000,000 x 10.67% = 213,400 po ang amount icapitalize sa general borrowing costs.
Hello po,, ask ko lang po if kung yun pong commencement date, is nagbegin ng february tas magaend ng december so it means po? Magastart po sya ng february which means po 11 months lang po ba sya or 12 months paren po kasi wala ng january.
Hi guys! I had a typographical error in the illustrative example. For 9/30 average expenditure, 8.8M x 3/12 is 2,200,000 and NOT 2,125,000.
Thus the average expenditure is 18,300,000 making the capitalized interest for general borrowings 144,040. Total capitalized interest is 2,184,040 and total interest expensed is 2,735,960.
Thanks and Sorry for the mistake.
bakit po hindi dineduct yung specific borrowing para makuha yung total interest expensed?
The answer is B yey. First time kong makasolve ng tama sa test your knowledge HHHAHAHAH salamat po ng marami sir
Sobrang thank you po sir!
Just saw this today. Thank you, sir!
Anyway, B po sagot ko. Haha
I was so confused i got 212,000 as my answer. Dapat pala 0.106666 na nakuha gagawing 0.1067 😂 Thank you sir!! Sobrang linaw ng explanations nyo ❤️
Thanks! Yes, in computing for the capitalization rate, we normally round it off to ease our computations.
Sir, can you please include in the tutorial about the journal entries necessary to record on the given problem? Thankyou Sir,just curious about how can you record it.
The entry is:
Debit PPE (for the capitalized amount)
Debit Interest expense (for the expensed amount)
Credit Cash
Thank you so much po!
You're welcome 😊
13:55 Question lang po.
Bakit po binawas yung Specific Borrowings sa Average Expenditures?
Kasi yung una mong pagkukuhaan ng funds to incur the expenditures ay galing sa specific borrowing. Only when hindi sufficient ang specific borrowing nagkakaroon ng getting the funds from the general borrowings. Thats why binabawas natin.
240,000+160,000+240,000 equals 640,000 divide 6M equals 10.67 Rate
400k x 12/12 = 400k
1M x 9/12 = 750,000
1.2M x 6/12 = 600k
1M x 3/12 = 250k
400k+750k+600k+250k equals 2M x 10.67 equals 213,400
The answer is B.
Very good!
Hi Sir. Question lang po. Paano po kapag expenditures were incurred evenly?
Divided by 2 lang ang weighted average.
Hi sir! Sir paano po if general borrowing po is obtained february 1. Sa pagkuha po ng ng actual interest incurred is based on 11/12? Pero sa pagkuha po ng capitalization rate is always annual? 12/12?
Not included in your video sir, pero tanong lang po. What is estimated cost of equity capital . Ini-ignore lang puba sya sa computation of borrowing cost?
Yes ignored yan.
Pero parang finance ata tinatanong mo. Sa FAR tong discussion to in accordance with PAS23z
@@SirAJCresmundo salamat sir
Ooh meron na face camera. XD
Yes finally had the confidence to show my face
Pano po ba malalaman kung "General" or "specific" yung isang cost? Minsan mo kasi walang nakalagay na "generally" or "specifically" kaya nakakalito po hehe. Tulad nalang po nito "borrowed 1M on a 5% Notes payable to finance a new warehouse which the entity is constructing for own use". Wala po siyang "generally" or "specifically". Pano po ba agad madaling ma-identify? Thanks po in advance!
If inutang sya for the purpose of financing construction then specific yun. All other liabilities are general.
B
PRINCIPAL = 6,000,000
BORROWING COST = 640,000
640,000 / 6,000,000 = 10.67%
1/1 400,000 x 12/12 = 400k
3/31. 1,000,000 x 9/12 = 750k
6/30 1,200,000 x 6/12 = 600,000
9/31 1,000,000 x 3/12 = 250,000
=2,000,000
10.67%
= 213,400
Very good!
SIPAG MO NAMANN
Capitalization Rate = 10.67%
Average Expenditures financed by general borrowings= 2,000,000
Since sa given po general borrowings lang kaya 2,000,000 x 10.67% = 213,400 po ang amount icapitalize sa general borrowing costs.
Very good!
Sir, question po may given po kasi na outstanding company debt sa problem po na sinasagutan ko. Paano po iyon? Thank you po.
Considered as general borrowing yun. Follow yung process na inexplain ko sa video for general borrowings.
Ang ginawa ko po sir is ginamit ko po sya sa pag kuha ng specific borrowing cost. Specific and Borrowing Cost po kasi yung question.
@@SirAJCresmundo Thank you po :)
Hello po,, ask ko lang po if kung yun pong commencement date, is nagbegin ng february tas magaend ng december so it means po? Magastart po sya ng february which means po 11 months lang po ba sya or 12 months paren po kasi wala ng january.
if commencement is february then 11 months lang sya for the first year. we make the proper adjustments lang.
11/12 po ba sya? Salamat po gusto ko lang po iclarify hehe
11/11
Lahat sa weighted average computation over 11
B
Very good! Correct! Great job!
very bad language, work on that bro...
i can know what is it philipino or English