oct30 - Accumulated expenditures Rate Avoidable Interest...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full DocumentRight Arrow Icon
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
Background image of page 2
Background image of page 3

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

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 07/04/2011 for the course ACG 101 taught by Professor Burnett during the Spring '09 term at Edison State College.

Page1 / 6

oct30 - Accumulated expenditures Rate Avoidable Interest...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online