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On March 1, 2019 Wick Co. began construction of a small building. The following expenditures were incurred for construction: March 1 75,000, April 1 74,000,
On March 1, 2019 Wick Co. began construction of a small building. The following expenditures were incurred for construction: March 1 75,000, April 1 74,000, May 1 180,000, June 1 270,000, and 100,000 July 1. The building was ready for occupation on July 1. To help pay for construction 50,000 was borrowed on March 1 on a 12%, note. payable. Other debt outstanding during the financial year was a 200,000 10% note issued two years ago, and a 100,000 8% note issued four years ago. Wick's financial year ends June 30. Instructions Calculate the weighted average accumulated expenditures Date Tipenditure Capitalisation Prever (b) Calculate avoidable interest. Wrightint-Arorage Marumalar Expenditure per your Inhoven late Audible leren Provide the June 30, 2019 Journal Entry to Recognize Interest Capitalization and Expense. Dec (d) Determine the total cost of the completed building. The total cost of completed by
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