Calculating Actual Interest and Weighted Average Interest Rate Weighted average accumulated expenditures are $400,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year.. Construction loan $100,000 at 10% Note payable $500,000 at 8% Mortgage payable $150,000 at 12% a. Compute the total actual interest expense for the current year. $ b. Compute the weighted average interest rate on the general debt. Calculation of weighted average interest rate Numerator + Denominator = Rate $ General Debt $ %

Calculating Actual Interest and Weighted Average Interest Rate Weighted average accumulated expenditures are $400,000 on a project for which work steadily progressed during the current year. The following debt was outstanding during the current year.. Construction loan $100,000 at 10% Note payable $500,000 at 8% Mortgage payable $150,000 at 12% a. Compute the total actual interest expense for the current year. $ b. Compute the weighted average interest rate on the general debt. Calculation of weighted average interest rate Numerator + Denominator = Rate $ General Debt $ %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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