The office was completed and ready for occupancy on july 1


Question - On March 1, 2018, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction:

Date Expenditures

March 1, 2018 $ 1,200,000

April 1, 2018 1,680,000

May 1, 2018 3,000,000

June 1, 2018 7,200,000

July 1, 2018 1,000,000

The office was completed and ready for occupancy on July 1. To help pay for construction, $2,400,000 was borrowed on March 1, 2018 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2018 was a $1,000,000, 12%, 6-year note payable dated January 1, 2022.

The weighted-average accumulated expenditures on the construction project during 2018?

Actual interest cost incurred during 2018?

Interest capitalized during 2018?

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Accounting Basics: The office was completed and ready for occupancy on july 1
Reference No:- TGS02675218

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