Question
Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on March 31, 2025. No new loans were required to
Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed on March 31, 2025. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period:
$3,000,000, 10% note
$7,000,000, 6% bonds
Construction expenditures incurred were as follows:
| July 1, 2024 | $ 460,000 |
|---|---|
| September 30, 2024 | 660,000 |
| November 30, 2024 | 660,000 |
| January 30, 2025 | 600,000 |
The companys fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2024 and 2025.
July 1, 2024- Expenditure? weight? Average?
Sept 30, 2024 Expenditure? weight? average?
Nov 30, 2024 Expenditure? weight? average?
average accumulated expenditure: interest rate? portion of year outstanding
2025: I need the same calculations above: expenditure, weight, average
jan 1 2025
jan 30, 2025
and average accumulated expenditures : interest rate and portion of the year outstanding
It would not let me copy and paste the chart to enter each answer
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Auditing Theory And Practice
Authors: Jerry R. Strawser, Robert H. Strawser
9th Edition
0873939336, 978-0873939331
