Klutlan Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Klutlan does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $2,000,000, 8% note $8,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, 2018 $520,000 September 30, 2018 600,000 November 30, 2018 600,000 January 30, 2019 540,000

Interest During Construction Matrix Inc. borrowed $1,000,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2019, and was completed on October 31, 2019. Expenditures related to this building were: January 1 $252,000 (includes cost of purchasing land of $150,000) May 1 310,000   July 1 420,000   October 31 276,000   In addition, Matrix had additional debt (unrelated to the construction) of $500,000 at 9% and $800,000 at 10%. All debt was outstanding for the entire year. 1. Compute the amount of interest capitalized related to the construction of the building. 2.If the expenditures are assumed to have been incurred evenly throughout the year:a. Compute weighted average accumulated expenditures b. Compute the amount of interest capitalized on the building

The following information is from Bowin Inc. for a long-term constructio project that is expected to be completed in January 2021. The construction project is for a building intended for the company's own use. Bowin Inc. borrowed $800,000 at 12% on January 1 to help finance the construction. All debt was outstanding for the full year. Capital Expenditures for 2020 Date Jan. 1, 2020 Mar. 1, 2020 June 30, 2020 Dec. 31, 2020 Amount $2,220,720 300,000 500,000 500,000 Outstanding Debt in 2020 Asset Debt Note payable Note payable Bond payable Note payable Construction loan Debt Amount Interest Rate $1,000,000 600,000 150,000 600,000 800,000 13% 8% 10% 12% 12% The weighted-average accumulated expenditures in 2020 is $

2.  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   What is the weighted average interest rate of debt other than the specific borrowing loan?  (Round of interest rate to nearest whole number, so if you calculated .1412 you would write 14)  The firm does not need to use the WAIR rate in calculating capitalized interest in order for it to exist   Thank you  Brenda