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Bailey Co. borrows $1.200.000 at an interest on December 1, 2014, to finance construction of...

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Accounting

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Bailey Co. borrows $1.200.000 at an interest on December 1, 2014, to finance construction of a new building to be used in its operations. Construction begins on February 1, 2015, and the construction expenditures shown below have been made by the end of 2015. The February 1, 2015 expenditure included 5400.000 for the purchase of and During 2015 Bailey earned 59.000 of interest income February 1, 2015 April 1. 2015 June 1, 2015 October 1, 2015 Total 5960,000 $ 960,000 5 340,000 S. 360.000 53.120.000 Below is other debt, which had been issued at par in 2013 and remained outstanding during all of 2015: $2.000.000. 6. 10 year bonds payable 51.000.000. Syear note payable Required a Compute the weighted Average Accumulated Expenditures for the year ended 12/31/15, b) Compute the voidable interest for the year ended 12/31/15 Assume that you computed the voidable interest to be 5165,000. Determine the amount of interest to capitalize. d} Determine the amount of interest to expense for the year ended 12/3175

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