9. On March 1, 2007, Mourinho Company purchased land for an office site by paying $540,000 cash. Mourinho began construction on the office building on March 1. The following expenditures were incurred for construction: 1,360,000 March 2007 April 1, 2007 May 1, 2007 June 1, 20071,440,000 504,000 900,000 The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2007 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2007 was $300,000, 12%, 6-year note payable dated January 1, 2007. The weighted- average accumulated expenditures on the construction project during 2007 were a. $384,000 b. $2,934,000 c. $312,000 d. $696,000
9. On March 1, 2007, Mourinho Company purchased land for an office site by paying $540,000 cash. Mourinho began construction on the office building on March 1. The following expenditures were incurred for construction: 1,360,000 March 2007 April 1, 2007 May 1, 2007 June 1, 20071,440,000 504,000 900,000 The office was completed and ready for occupancy on July 1. To help pay for construction, $720,000 was borrowed on March 1, 2007 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2007 was $300,000, 12%, 6-year note payable dated January 1, 2007. The weighted- average accumulated expenditures on the construction project during 2007 were a. $384,000 b. $2,934,000 c. $312,000 d. $696,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.12MCE
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