Answer:
The weighted average accumulated expenditures for 2020 were;
$10,200,000
Explanation:
To determine the accumulated expenditures for 2020, follow the steps below;
<em>Step 1: Determine outstanding loans in 2020</em>
Expense
Since the first loan taken was taken on January 2,2020, the its weighted average will be the outstanding loan for that year multiplied by the number of months when the loan was used over number of months in a year. This can be expressed as;
Loan outstanding=$2,200,000×12/12=$2,200,000
For the bonds, we have been given the outstanding balance for 2020 already as shown;
Bonds outstanding in 2020=$8,000,000
<em>Step 2: Determine the weighted-average accumulated expenditures in 2020</em>
Average accumulated=January 2,2020 Loan outstanding+Bonds outstanding in 2020
replacing;
Average accumulated=(2,200,000+8,000,000)=$10,200,000
Average accumulated=$10,200,000
The weighted average accumulated expenditures for 2020 were;
$10,200,000
