Question
On March 1, 2018, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March
On March 1, 2018, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction:
Date Expenditures
March 1, 2018 $ 1,200,000
April 1, 2018 1,680,000
May 1, 2018 3,000,000
June 1, 2018 7,200,000
July 1, 2018 1,000,000
The office was completed and ready for occupancy on July 1. To help pay for construction, $2,400,000 was borrowed on March 1, 2018 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2018 was a $1,000,000, 12%, 6-year note payable dated January 1, 2022.
The weighted-average accumulated expenditures on the construction project during 2018?
Actual interest cost incurred during 2018?
Interest capitalized during 2018?
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
