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I need all requirments the year OUUUUU Kline Corporation engaged Sir Ditzler, Inc. to design and construct a manufacturing facility. Construction began on January 2
I need all requirments
the year OUUUUU Kline Corporation engaged Sir Ditzler, Inc. to design and construct a manufacturing facility. Construction began on January 2 and was completed on December Click the icon to view payments.) (Click the icon to view additional information.) Read the requirement October 1 December 1 91,667 Total Accumulated Expenditure 3,391,667 Requirement b. Compute the amount of avoidable interest and actual interest cost for the current year. (Round your answer to the nearest whole dollar.) Let's begin by calculating the actual interest for the current year. Debt Type Principal Interest Rate Actual Interest 9% Notes (Specific) $ 3,300,000 297,000 $ 11% $ 9% Bonds (General) $ 4,500,000 9 % 405,000 11% Notes (General) $ 1.800.000 198,000 Total General Debt $ 6,300,000 603.000 Total $ 900,000 Now, compute the avoidable Interest for the current year. (Round the interest rates to the nearest hundredth of a percent, XXX%) Debt Weighted Averago Avoldable Type Accumulated Expenditures Rate Interest Specific Debt 3,300,000 9% General Debt 9.6% Totals Requirement a. Compute the weighted average accumulated expenditures for the current year. (Do not round intermediary Date Weighted-Average (Current Year) Accumulated Expenditures January 2 2,000,000 August 1 500,000 October 1 800,000 December 1 91,667 Total Accumulated Expenditure $ 3,391,667 Requirement b. Compute the amount of avoidable interest and actual interest cost for the current year. (Round your answer Let's begin by calculating the actual interest for the current year. Debt Type Principal Interest Rate Actual Interest 9% Notes (Specific) $ 3,300,000 $ 297,000 9 % $ 9% Bonds (General) 11% Notes (General) 9 % $ $ 4,500,000 1,800,000 6,300,000 11 % Total General Debt $ 405,000 198,000 603,000 900,000 $ Total $ Now compute the unidahl Payments Date Amount January 2 $ 2,000,000 August 1 October 1 1,200,000 3,200,000 1,100,000 the December 1 Print Done More info To specifically finance the project, Kline issued $3,300,000 of 3-year, 9% notes payable on January 2. Interest is payable annually on December 31 each year. Prior to the commencement of the latest construction project, Kline had other debt in its capital structure. All general debt is outstanding as of the beginning of the current year. The general debt consists of $4,500,000 par value, 9% bonds payable and a $1,800,000, 11% note payable. Both debt instruments require annual interest payments each December 31. Print Done 305,000 a manufacturing facility. Construction began on January 2 and was completed on December 31 of the current year. The following payments were made to the contractor during additional information) Tee Denditures for the current year. (Do not round intermediary calculations Only round the amount you input in the cell to the nearest dollar) 000 000 000 567 367 metun interest cost for the current year. (Round your answer to the nearest whole dollar) ual Interest 207,000 405,000 190,000 603,000 900.000 the interth Requirements - a. Compute the weighted-average accumulated expenditures for the current year. b. Compute the amount of avoidable interest and actual interest cost for the current year. Indicate the amount of total interest to be capitalized and the amount of interest expense for the year. d. Prepare the journal entry to record the December 31 interest payments. Assume that the interest is paid in cash and that any interest capitalized is recorded in the Construction in Progress account. C Step by Step Solution
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