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i would like all parts filled out but i am confused as to if we only include other outstanding debt or the 1000000 at 10%
i would like all parts filled out but i am confused as to if we only include "other outstanding debt" or the 1000000 at 10% to compute actual interest as well.
Capitalized interest. On December 31, 2017, No Tricks, Ine. borrowed $1,000,000 at 10 \& payable annually to finance the construction of a new building. In 2018 , the company made the following expenditures related to this building: June 1, $400,000; July 1, $600,000; September 1. S1, 200,000 ; December 1, S600,000. Determine the amount of interest to be capitalized as of December 31,2018 . The building was completed in April 2019. Additional information is provided as follows. 1. Other debt ourstanding 10-year, 8% bond, dated December 31, 2010, interest payable annually $10,000,000 15-year, 10% note, dated December 31,2004 , interest payable annually 52,500,000 2. Interest revenuc earned in 2018$6,000 (a) Compute Weighted-Average Accumulated Expenditures (b) Compute actual interest (c) Compute avoidable interest (d) Prepare the journal entry to record the capitalization of interest and the recognition of interest Step by Step Solution
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