{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

chapter 10 question solutions

# chapter 10 question solutions - Chapter#10 Class and...

This preview shows pages 1–4. Sign up to view the full content.

Chapter#10 Class and Homework problems: BRIEF EXERCISE 10-2 Expenditures Date Amount Capitalization Period Weighted-Average Accumulated Expenditures 3/1 \$1,500,000 10/12 \$1,250,000 6/1 1,200,000 7/12 700,000 12/31 3,000,000 0 0 \$5,700,000 \$1,950,000 BRIEF EXERCISE 10-3 Principal Interest 13%, 5-year note \$2,000,000 \$260,000 15%, 4-year note 3,500,000 525,000 \$5,500,000 \$785,000 Weighted-average interest rate = \$785,000 = 14.27% \$5,500,000 BRIEF EXERCISE 10-4 Weighted-Average X Interest = Avoidable Accumulated Expenditures Rate Interest \$1,000,000 12% \$120,000 950,000 14.27% 135,565 \$1,950,000 \$255,565 EXERCISE 10-1 (15–20 minutes) Item Land Land Improvements Building Other Accounts (a) (\$275,000) Notes Payable (b) \$275,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
(c) \$ 8,000 (d) 7,000 (e) 6,000 (f) (1,000) (g) 22,000 (h) 250,000 (i) 9,000 (j) \$ 4,000 (k) 11,000 (l) (5,000) (m) 13,000 (n) 19,000 (o) 14,000 (p) 3,000 EXERCISE 10-2 (10–15 minutes) The allocation of costs would be as follows: Land Building Land \$400,000 Razing costs 42,000 Salvage (6,300) Legal fees 1,850 Survey \$ 2,200 Plans 68,000 Title insurance 1,500 Liability insurance 900 Construction 2,740,000 Interest 170,000 \$439,050 \$2,981,100 EXERCISE 10-8 (20–25 minutes) (a) Computation of Weighted-Average Accumulated Expenditures Expenditures Date Amount X Capitalization Period = Weighted-Average Accumulated Expenditures March 1 \$ 360,000 10/12 \$ 300,000
June 1 600,000 7/12 350,000 July 1 1,500,000 6/12 750,000 December 1 1,500,000 1/12 125,000 \$3,960,000 \$1,525,000 Computation of Avoidable Interest

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 9

chapter 10 question solutions - Chapter#10 Class and...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online