Question
On March 1,PatriciaCo. began construction of a small building. The following expenditures were incurred for construction: March 1 $315,000 April 1. 254,000 May 1. 751,500
On March 1,PatriciaCo. began construction of a small building. The following expenditures were incurred for construction:
March 1 $315,000
April 1. 254,000
May 1. 751,500
June 1 1,152,000
July 1. 391,000
The building was completed and occupied on July 1. To help pay for construction $215,000was 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.
Calculate the weighted-average accumulated expenditures.
Date. Expenditures CapitalizationPeriod WeightedAverageAccumulatedExpenditure
03/ 01. $315,000
04/01. 254,000
05/01. 751,500
06/01. 1,152,000
07/01. 391,000
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Modern Advanced Accounting in Canada
Authors: Hilton Murray, Herauf Darrell
8th edition
1259087557, 1057317623, 978-1259087554
