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Question - On March 1, Dubai Corp. began construction of a small building. The following expenditures were incurred for construction:
Mar. 1 $75,000
Apr. 1 84,000
May 1 180,000
Jun. 1 $300,000
Jul. 1 100,000
The building was completed and occupied on July 1. To help pay for construction, $ 60,000 was borrowed on March 1 on a 10%, three-year note payable. The only other debt outstanding during the year was a $ 500,000, 8% note issued two years ago.
Required -
a) Calculate the weighted-average accumulated expenditures.
b) Record the overall process in the books with the transactions.
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