注会-会计英语讲义(14)

会计英语基础讲义

and can be recognized immediately in the current accounting period. The balance of the monies that it has received is to be recognized as a liability.

Dr. Cash 1,000 Being the banking of the cash received

Cr. Revenue/Sales 100 Being the commission earned as an agent

Cr. Hotel creditor 900 Being the liability to pay money over to the hotel

第十八章 借款费用borrowing costs

Example 1：

On 1 January 20X6 Rechno Co borrowed $15m to finance the production of two assets, both of which were expected to take a year to build. Production started during 20X8. The loan facility was drawn down on 1 January 20X8, and was utilized as follows, with

the remaining funds invested temporarily.

The loan rate was 10% and Rechno Co can invest surplus funds at 8%.

Required

Ignoring compound interest, calculate the borrowing costs which may be capitalized for each of the assets and consequently the cost of each asset as at 31 December

20X8.