Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hawkins Corporation began construction of a motel on March 3 1 , 2 0 2 4 . The project was completed on April 3 0

Hawkins Corporation began construction of a motel on March 31,2024. The project was completed on April 30,2025. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period:
$4,300,000,6% note
$18,220,000,10% bonds
Construction expenditures incurred were as follows:
March 31,2024 $ 4,270,000
June 30,20246,270,000
November 30,20241,854,000
February 28,20253,270,000
The companys fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2024 and 2025.
Note: Round weighted average interest rate to 2 decimal places and final answers to the nearest whole dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

11th Edition

9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895

More Books

Students also viewed these Accounting questions