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Problem 1 (20 Points) Inter Corporation started the construction of a building to use as its corporate December 31, 2013. Inter incurred headquarters. The project

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Problem 1 (20 Points) Inter Corporation started the construction of a building to use as its corporate December 31, 2013. Inter incurred headquarters. The project was completed and ready for occupancy on the following expenditures related to construction during 2013: Date January1 March 1 October 1 November 1 S1,800,000 1,200,000 900,000 300,000 In order to help finance the construction, on January 1, 2013, Inter obtained a $1,000,000 construction loan with a 8% interest rate. In addition to the 10% bonds payable, the company had outstanding all year a $4,000,000, 6% note payable and a $10,000,000, 7%, note payable. Instructions: Compute the amounts of each of the following (show your computations and label your work): 1. Weighted-average accumulated expenditures. 2. Avoidable interest 3. The actual interest 4. 5. paid in cash: The amount of interest cost to be capitalized during 2013. Prepare the journal entry to record total interest cost incurred, assuming that all interest was Problem 1 (20 Points) Inter Corporation started the construction of a building to use as its corporate December 31, 2013. Inter incurred headquarters. The project was completed and ready for occupancy on the following expenditures related to construction during 2013: Date January1 March 1 October 1 November 1 S1,800,000 1,200,000 900,000 300,000 In order to help finance the construction, on January 1, 2013, Inter obtained a $1,000,000 construction loan with a 8% interest rate. In addition to the 10% bonds payable, the company had outstanding all year a $4,000,000, 6% note payable and a $10,000,000, 7%, note payable. Instructions: Compute the amounts of each of the following (show your computations and label your work): 1. Weighted-average accumulated expenditures. 2. Avoidable interest 3. The actual interest 4. 5. paid in cash: The amount of interest cost to be capitalized during 2013. Prepare the journal entry to record total interest cost incurred, assuming that all interest was

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