The weighted average accumulated expenditure for current year. Given Information: Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years. Amount of 6% bond payable is $5,000,000. Amount of 9% note payable is $1,000,000. Additional payments in second year amounted to $900,000 and $1,800,000. Line of credit opted to finance operating cycle amounted to $2,400,000.

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Answer 1

Question

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

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Answer 2

Question

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

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Answer 3

Question

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

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Answer 4

Question

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

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Answer 5

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

c.

To determine

The amount of interest to be capitalized and expensed during the year.

d.

To determine

To prepare: The journal entry to record the interest payments.

Answer 6

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

Answer 7

Chapter 11, Problem 11.9E

a.

To determine

The weighted average accumulated expenditure for current year.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

Answer 8

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

Answer 9

b.

To determine

To determine: To determine: The amount of avoidable interest and actual interest.

Given Information:

Amount of note payable is $2,800,000 with the interest of 5% and time period of 3 years.

Amount of 6% bond payable is $5,000,000.

Amount of 9% note payable is $1,000,000.

Additional payments in second year amounted to $900,000 and $1,800,000.

Line of credit opted to finance operating cycle amounted to $2,400,000.

Answer 10

c.

To determine

The amount of interest to be capitalized and expensed during the year.

Answer 11

c.

To determine

The amount of interest to be capitalized and expensed during the year.

Answer 12

d.

To determine

To prepare: The journal entry to record the interest payments.

Answer 13

d.

To determine

To prepare: The journal entry to record the interest payments.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Solution Summary: The author concludes that the weighted average accumulated expenditure (WAEE) for current year is 7,670,813.

The amount of interest to be capitalized and expensed during the year.

To prepare: The journal entry to record the interest payments.

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Chapter 11 Solutions