During Carlos Co constructed various assets at a total cost of $ million. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during were $ The company had the following debt outstanding on December :
$ Million, year note for a construction loan, dated January with interest
payable annually on December
$ Million, tenyear bonds issued at par on December with interest payable annually on December
$ million, year note payable, dated January with interest payable annually on December
a What is avoidable interest for the year?
b What journal entry is made to pay all interest costs during What is the effect of this entry on total assets, liabilities, equity, revenues, expenses, and net income? Give both direction and amount
c What journal entry and effects would be made if the weighted average expenditures were
$ instead of $ Assume everything else is other than WAE is the same.
