On January 1, YR1 Stevens CO, began construction of small building. The following expenditures were incurred for construction YR1: Jan 1 85,000 April 1 62,000 May 1 105,000 June 1 200,000 July 1 118,000 To helo pay for construction, 100,000 was borrowed on January 1, YR1 on a 12% three year notes payable. The weighted average interest rate on all the other debts is 11.2%. Stevens Co. ends its fiscal year on dec 31 each year. Calculate stevens avoidable interest YR1 assuming the building was completed and ready for use on July 31 YR1. Actual interest for YR1 is 152,000 1) round your answeres to the neartest whole number 2) for the 2nd column (% of current yr) put the numerator in the first box and the denominator in the second box. Expenditures % of current year Interest Rate Avoidable Interest / % / % / % / % / % Total Avoidable Interest Please avoid solution image based thnku
On January 1, YR1 Stevens CO, began construction of small building. The following expenditures were incurred for construction YR1: Jan 1 85,000 April 1 62,000 May 1 105,000 June 1 200,000 July 1 118,000 To helo pay for construction, 100,000 was borrowed on January 1, YR1 on a 12% three year notes payable. The weighted average interest rate on all the other debts is 11.2%. Stevens Co. ends its fiscal year on dec 31 each year. Calculate stevens avoidable interest YR1 assuming the building was completed and ready for use on July 31 YR1. Actual interest for YR1 is 152,000 1) round your answeres to the neartest whole number 2) for the 2nd column (% of current yr) put the numerator in the first box and the denominator in the second box. Expenditures % of current year Interest Rate Avoidable Interest / % / % / % / % / % Total Avoidable Interest Please avoid solution image based thnku
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On January 1, YR1 Stevens CO, began construction of small building. The following expenditures were incurred for construction YR1:
| Jan 1 | 85,000 |
| April 1 | 62,000 |
| May 1 | 105,000 |
| June 1 | 200,000 |
| July 1 | 118,000 |
To helo pay for construction, 100,000 was borrowed on January 1, YR1 on a 12% three year notes payable. The weighted average interest rate on all the other debts is 11.2%. Stevens Co. ends its fiscal year on dec 31 each year.
Calculate stevens avoidable interest YR1 assuming the building was completed and ready for use on July 31 YR1. Actual interest for YR1 is 152,000
1) round your answeres to the neartest whole number
2) for the 2nd column (% of current yr) put the numerator in the first box and the denominator in the second box.
| Expenditures | % of current year | Interest Rate | Avoidable Interest |
| / | % | ||
| / | % | ||
| / | % | ||
| / | % | ||
| / | % | ||
| Total Avoidable Interest |
Please avoid solution image based thnku
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education