3. 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: $4,900,000, 6% note $22,660,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2024 $ 4,810,000 June 30, 2024 6,810,000 November 30, 2024 1,962,000 February 28, 2025 3,810,000 The company's 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.

3. 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: $4,900,000, 6% note $22,660,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2024 $ 4,810,000 June 30, 2024 6,810,000 November 30, 2024 1,962,000 February 28, 2025 3,810,000 The company's 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company’s general borrowings for the year: £m 10% loan repayable 20X9 250 8% loan repayable 20Y2 750 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £45 million on that date to fund construction. On 1 September 20X8 an additional £60 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8. Select one: a. £5,000,000 b. £4,250,000 c. £5,418,750 d. £850,000 e. £8,925,000 f. £3,056,250
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D4. As of december 31, 2019, Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund’s only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments.
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Please help me to answer with clear computation the Required 1 and 2 of this Problem. Thank you so much!
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! Required information [The following information applies to the questions displayed below.] Super Splash issues $900,000, 8% bonds on January 1, 2024, that mature in 20 years. The market interest rate for bonds of similar risk and maturity is 7%, and the bonds issue for $996,098. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. Cash Date Paid Interest Expense Change in Carrying Value Carrying Value 1/1/2024 $ 996,098 6/30/2024 36,000 34,863 1,137 994,961 12/31/2024 36,000 34,890 1,110 x 993,851
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Answer all parts. Thank you!