Question
On March 1, a Company began construction of a small building. The following expenditures were incurred for construction: March 1 SR 75,000 April 1 SR
On March 1, a Company began construction of a small building. The following expenditures were incurred for construction:
March 1 SR 75,000 April 1 SR 74,000
May 1 180,000 June 1 270,000
July 1 100,000
The building was completed and occupied on July 1. To help pay for construction SR50,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a SR500,000, 10% note issued two years ago.
Instructions
(a) Calculate the weighted-average accumulated expenditures.
(b) Calculate avoidable interest.
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
