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oct30 - Accumulated expenditures Rate Avoidable Interest...

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Michael McCormick ACG 3103 E10-1  Item Land Land Improvements Building Other Accounts a -275,000 b 275,000 c 8,000 d 7,000 6,000 f -1,000 g 22,000 h 200,000 50,000 9,000 j 4,000 k 11,000 l -5,000 m 13,000 n 19,000 o 14,000 p 3,000 E10-3 1 Fleet 13,900    Cash 13,900 2 Fleet 16,000    Note 12,727    Discount 1,273    Cash 2,000 3 Fleet 12,000     inventory 12,000 4 Fleet 10,000    Common stock 10,000 E10-7 a 2,000,000 0 240,000 Principal 1,600,000 0 166,720 1,400,000 406,720 1,000,000 2,400,000 Weighted average interest rate b 39,447 Depreciation Expense 163,333    Accumulated Depreciation 163,333
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Michael McCormick ACG 3103 E10-9 a. Intrest revenue  $2,500  Weighted average  $75,000     accumulated expenditures     Avoidable interest  $12,000  Total interest to be capitalized  $12,000  Total cost     $300,000 Total borrowing  $300,000 expenditures Amount total weighted average Date 200,000 0 66,667 July 31,07 100,000 0 8,333 Nov 1,07 300,000  $75,000  weighted average
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Unformatted text preview: Accumulated expenditures Rate Avoidable Interest 300,000 4 12,000 weighted average interst rate computation: 8.00% Principal Intest 6 year at 8% 30,000 2,400 construction note 300,000 12% 12,000 6 year note 30,000 8% 2,400 Actual interest $14,400 b. 6/31/2007 cash 300,000 note 300,000 6/31/2007 machinery 200,000 cash 200,000 6/31/2007 marketable securities 100,000 cash 100,000 11/1/2007 cash 102,500 Interest revenue 2,500 marketable securities 100,000 11/1/2007 machinery 100,000 cash 100,000 Michael McCormick ACG 3103 12/31/2007 machinery (capitalized interest) 12,000 Interest Expense 2,400 cash 14,400 Michael McCormick ACG 3103 Interest 140,000 110,000 250,000 Michael McCormick ACG 3103 Michael McCormick ACG 3103...
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