exp borrowed 700000 5 12%

Mar-01 1260000 8% 5 1400000

Jun-01 840000 11% 4 2450000
Dec-31 2100000

Expenditures
Date Amount Capitalisation period W.Avg acc. Expenditures
Mar-01 $ 1,260,000 10/12 $ 1,050,000.00
Jun-01 $ 840,000 7/12 $ 490,000.00
Dec-31 $ 2,100,000 0/12 $ -
$ 4,200,000 $ 1,540,000.00

Principal
8% 5 year note $ 1,400,000 $ 112,000
11% 4 year note $ 2,450,000 $ 269,500
$ 3,850,000 $ 381,500

Weighted average interest= 381500/3850000 9.9091%

Weighted average
acc. Expenditures Interest rate Avoidable interest
$ 700,000.00 12.00% $ 84,000
$ 840,000.00 9.9091% $ 83,236
$ 1,540,000.00 $ 167,236
exp borrowed 1155090 5 12%
Mar-01 2076000 9% 5 2376900
Jun-01 1224000 10% 4 3397000
Dec-31 3076600

Expenditures
Date Amount Capitalisation period W.Avg acc. Expenditures
Mar-01 $ 2,076,000 10/12 $ 1,730,000.00
Jun-01 $ 1,224,000 7/12 $ 714,000.00
Dec-31 $ 3,076,600 0/12 $ -
$ 6,376,600 $ 2,444,000.00

Principal
9% 5 year note $ 2,376,900 $ 213,921
10% 4 year note $ 3,397,000 $ 339,700
$ 5,773,900 $ 553,621

Weighted average interest= 553621/5773900 9.59%

Weighted average
acc. Expenditures Interest rate Avoidable interest
$ 1,155,090.00 12.00% $ 138,611
$ 1,288,910.00 9.59% $ 123,606
$ 262,217
Accounts debit credit 2660 16
Land 126530 126530
common stock(2660*16) 42560 46
paid in capital in excess of par common stock 83970