On March 1, Mocl Co. began construction of a small building. The following expenditures were...
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Accounting
On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction: March 1 $ 225,000 April 1 $ 222,000 May 1 540,000 June 1 810,000 July 1 300,000 The building was completed and occupied on July 1. To help pay for construction $150,000 was borrowed on March 1 on a 12%, three-year note payable. The only other debt outstanding during the year was a $1,500,000, 10% note issued two years ago. Instructions (a) Calculate the weighted-average accumulated expenditures. (b) Calculate avoidable interest.
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