On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Dec 1, $1,500,000. The building was completed on April 30, 2022 Other debt outstanding 10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually 6 year, 10%, $1,600,000 note dated December 31,2018, interest payable March 1, 2021 an additional expenditure was made towards construction of $150,000 Interest revenue earned in 2021 $49,000 Suppose instead that the WAC is equal to $3,300,000 in 2021. What amount of interest expense would be recorded on the balance sheet in relation to the above situation? write your answer as a positive number ($20,000) Assume the same debt structure as discussed above
4. On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Dec 1, $1,500,000. The building was completed on April 30, 2022
Other debt outstanding
10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually
6 year, 10%, $1,600,000 note dated December 31,2018, interest payable
March 1, 2021 an additional expenditure was made towards construction of $150,000
Interest revenue earned in 2021 $49,000
Suppose instead that the WAC is equal to $3,300,000 in 2021. What amount of interest expense would be recorded on the balance sheet in relation to the above situation? write your answer as a positive number ($20,000) Assume the same debt structure as discussed above
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Brenda
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