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I've gotten most of this problem but I can't figure out the 2 marked wrong. Please follow the format and show me how to do
I've gotten most of this problem but I can't figure out the 2 marked wrong. Please follow the format and show me how to do it correctly and I will defiantly thumbs up it!
WEIGHTED AVERAGE METHOD PLEASE
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, $680,000; March 31, $780,000; June 30, $580,000; October 30, $1,140,000. The company arranged a 9% loan on January 1 for $1,060,000. Assume the $1,060,000 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 10% and 8%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34%).) Date January 1, 2021 March 31, 2021 June 30, 2021 October 30, 2021 Accumulated expenditures Average accumulated expenditures All loans X Answer is complete but not entirely correct. Expenditure 680,000 780,000 580,000 1,140,000 $ 3,180,000 $ Amount $ 1,745,000 157,050 X X X X Weight 12/12 9/12 6/12 2/12 Interest Rate 7.00 % % = = = = = = = $ 680,000 585,000 290,000 190,000 $ 1,745,000 Average Capitalized Interest $ $ 10,994 0 10,994Step by Step Solution
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