What is the weighted average accumulated expenditure

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Question: Outshine Ltd. begins construction of an education center on April 1, 2015 which is completed on July 31, 2016. The expenditures are as follows:

April 1, 2015

$300,000

July 31, 2015

180,000

December 1, 2015

90,000

Jan.31, 2016

70,000

June 30, 2016

140,000

total

780,000

Outshine issues a $500,000 bond payable with an interest rate of 5% to finance the project which is outstanding during the entire construction period. In addition, the following general-purpose debts are outstanding:

7% 10-year bond due 2018                 $2,000,000

8% 20-year note due 2020                  $3,000,000

1. What is the weighted average accumulated expenditure in 2015?

2. What is the weighted average interest rate on the two general debts?

3. What is the amount of interest to be capitalized in 2015?

4. What is the weighted average accumulated expenditure in 2016?

5. What is the amount of interest to be capitalized in 2016?

6. What is the total cost of the education center?

Reference no: EM131765427

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