On March 1, Nash Co. began construction of a small building. The following expenditures were incurred for construction: March 1 April 1 May 1 June 1 July 1 $272,400 277,200 717,600 1.100,400 (a) 439,000 The building was completed and occupied on July 1. To help pay for construction $213,000 was borrowed on March 1 on a 12%, three- year note payable. The only other debt outstanding during the year was a $2,056.000, 10% note issued two years ago. Calculate the weighted-average accumulated expenditures. The weighted average accumulated expenditures $

On March 1, Nash Co. began construction of a small building. The following expenditures were incurred for construction: March 1 April 1 May 1 June 1 July 1 $272,400 277,200 717,600 1.100,400 (a) 439,000 The building was completed and occupied on July 1. To help pay for construction $213,000 was borrowed on March 1 on a 12%, three- year note payable. The only other debt outstanding during the year was a $2,056.000, 10% note issued two years ago. Calculate the weighted-average accumulated expenditures. The weighted average accumulated expenditures $

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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A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000, June 30, $490,000; October 30, $870,000. The company arranged a 8% loan on January 1 for $880,000. Assume the $880,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a $4 million loan and a $6 million note with interest rates of 12% and 7%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. A company constructs a building for its own use. Construction began on January 1 and ended on December The expenditures for construction were as follows: January 1, $590,000; March 31, $690,000; June 30, $490,000; October 30, $870,0 00. The company arranged a 8% loan on January 1 for $880,000. Assume the $880,000 loan is not…
On March 1, Gatt Co began construction of a small building. The following expenditures were incurred for construction: March 1: $75,000 April 1: $74,000 May 1: $180,000 June 1: $270,000 July 1: $100,000 The building was completed and occupied on July 1. To help pay for the construction, $50,000 was borrowed on March 1 on a 12%, three year note payable. The only other debt outstanding during the year was a $500,000, 10% note issued two years ago. 1. Calculate the weighted-average accumulated expenditures Use commas, but do not use $ signs or cents. Question 11 Calcualte the actual interest cost incurred during the year. 4 pts
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A company began constructing a new warehouse for its operations during the current year. In the year the company incurred interest of $20,000 on a working capital loan, and interest on a construction loan for the warehouse of $80,000. Interest computed on the average accumulated expenditures for the warehouse construction was $40,000. What amount of interest should be expensed for the year?
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