Question
Venetian Inc. decided to open a new retail outlet in a neighboring town. On January 1, 2022, Venetian took out a $400,000 construction loan and
Venetian Inc. decided to open a new retail outlet in a neighboring town. On January 1, 2022, Venetian took out a $400,000 construction loan and purchased the land on January 15, 2022. Construction for the new store began on March 1, 2022. Information about 2022 construction expenditures and details about Venetian's borrowings are below:
Venetian Construction Expenditures2022 | ||
Payment for construction materials & labor | Jan. 6, 2022 | $300,000 |
Payment for construction materials & labor | Mar. 31, 2022 | 50,000 |
Payment for construction materials & labor etc. | June 30, 2022 | 350,000 |
Payment for construction materials & labor. | Dec. 31, 2022 | 150,000 |
Venetian Borrowings | |||
Construction loan for retail building project | Jan. 1, 2022 | $400,000 | 6% |
Note payable | Mar. 31, 2020 | 420,000 | 8% |
Bond payable | Oct. 31, 2020 | 280,000 | 10% |
What is the amount of weighted average expenditures for 2022? (do not use $ signs, commas or decimals in your answer)
What is the amount of avoidable interest? (do not use $ signs, commas or decimals in your answer)
What is the amount of actual interest? (do not use $ signs, commas or decimals in your answer)
What is the amount of interest capitalized? (do not use $ signs, commas or decimals in your answer)
What is the amount of interest expense? (do not use $ signs, commas or decimals in your answer)
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