Bonita Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6552000 on March 1, $5280000 on June 1, and $8450000 on December 31. Bonita Industries borrowed $3180000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12150000 note payable.

What are the weighted-average accumulated expenditures?
a.20282000 b.8540000 c.9992000 d.11832000

Waterway Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6310000 on March 1, $5350000 on June 1, and $8750000on December 31. Waterway Industries borrowed $3180000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6450000 note payable and an 11%, 4-year, $12650000 note payable.

What is the actual interest for Waterway Industries?
a.935831 b.2450100 c.2022500 d.2418100

 

 

Oriole Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6450000 on March 1, $5250000 on June 1, and $8950000 on December 31. Oriole Company borrowed $3220000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6390000 note payable and an 11%, 4-year, $12650000 note payable.

What amount of interest should be charged to expense?

a.2036500 b.1087912 c.1176712 d.1474314