On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $150,000 April 1 $148,000 May 1 $360,000 June 1 $540,000 July 1 $200,000 The building was completed and occupied on July 1. To help pay for construction $100,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $1,000,000, 10% note issued two years ago. Calculate the weighted-average accumulated expenditures.

On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $150,000 April 1 $148,000 May 1 $360,000 June 1 $540,000 July 1 $200,000 The building was completed and occupied on July 1. To help pay for construction $100,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $1,000,000, 10% note issued two years ago. Calculate the weighted-average accumulated expenditures.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5Q: For each of the following transactions, state whether the cost would be capitalized (C) or recorded...

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