Question

In: Accounting

Villa Industries is constructing a building. Construction began on January 1 and was completed on December...

Villa Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6370000 on March 1, $5300000 on June 1, and $8250000 on December 31. Bonita Industries borrowed $3250000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6450000 note payable and an 11%, 4-year, $12250000 note payable.


What is the actual interest for Bonita Industries?

A.$2382500

B.

 $1984500
C.$938990
D.$2418250

Solutions

Expert Solution

ANS A 2,382,500

Computation of the Actual Interest
Loan Amount Interest Interest amount
$                                                                                             3,250,000 0.12 $ 390,000
$                                                                                             6,450,000 0.10 $ 645,000
$                                                                                           12,250,000 0.11 $        1,345,500
Total Actual Interest Amount $        2,382,500

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Bonita Industries is constructing a building. Construction began on January 1 and was completed on December...
Bonita Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6552000 on March 1, $5280000 on June 1, and $8450000 on December 31. Bonita Industries borrowed $3180000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12150000 note payable. What are the weighted-average accumulated expenditures? a.20282000 b.8540000...
Marigold Corp. is constructing a building. Construction began on January 1 and was completed on December...
Marigold Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6380000 on March 1, $5250000 on June 1, and $8050000 on December 31. Marigold Corp. borrowed $3250000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6450000 note payable and an 11%, 4-year, $12350000 note payable. What amount of interest should be charged to...
Arlington Company is constructing a building. Construction began on January 1 and was completed on December...
Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Arlington Company borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable. What is the avoidable interest for Arlington Company?
Sheridan Company is constructing a building. Construction began on January 1 and was completed on December...
Sheridan Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6380000 on March 1, $5290000 on June 1, and $8650000 on December 31. Sheridan Company borrowed $3240000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6410000 note payable and an 11%, 4-year, $12850000 note payable. What is the avoidable interest for Sheridan Company?
Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December...
Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6480000 on March 1, $5310000 on June 1, and $8350000 on December 31. Swifty Corporation borrowed $3200000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6390000 note payable and an 11%, 4-year, $11950000 note payable. What amount of interest should be charged to...
Red Man Construction is constructing a building. Construction began on January 1 and was completed on...
Red Man Construction is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Red Man borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable prepare all entries that are necessary
Red Man Construction is constructing a building. Construction began on January 1 and was completed on...
Red Man Construction is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Red Man borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable. what amount of interest should be charged...
(2) Red Man Construction is constructing a building. Construction began on January 1 and was completed...
(2) Red Man Construction is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Red Man borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4-year, $12,000,000 note payable. What amount of interest should be...
Novak Company is constructing a building. Construction began on February 1 and was completed on December...
Novak Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,944,000 on March 1, $1,224,000 on June 1, and $3,072,650 on December 31. Compute Novak’s weighted-average accumulated expenditures for interest capitalization purposes. Weighted-Average Accumulated Expenditures = $
Skysong Company is constructing a building. Construction began on February 1 and was completed on December...
Skysong Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,240,000 on March 1, $2,160,000 on June 1, and $5,400,000 on December 31. Skysong Company borrowed $1,800,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $3,600,000 note payable and an 11%, 4-year, $6,300,000 note payable. Compute avoidable interest for Skysong Company. Use the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT