Question
On March 1, Sandra Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $304,500 April 1 248,000 May
On March 1, Sandra Co. began construction of a small building. The following expenditures were incurred for construction:
March 1 $304,500
April 1 248,000
May 1 732,000
June 1 1,122,000
July 1 390,000
The building was completed and occupied on July 1. To help pay for construction $204,500 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $2,000,000, 10% note issued two years ago.
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(a)
Calculate the weighted-average accumulated expenditures. (Do not leave any answer field blank. Enter 0 for amounts.)
Date Expenditures Capitalization Period Weighted-Average Accumulated Expenditure
March 1 $304,500 $
April 1 248,000
May 1 732,000
June 1 1,122,000
July 1 390,000 $
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Access For Computer Accounting
Authors: Donna Kay
19th Edition
1259741109, 9781259741104
