Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $5,700,000, 6% note $9,380,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2021 June 30, 2021 November 30, 2021 February 28, 2022 $3,370,000 5,370,000 1,674,000 2,370,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022. (Round weighted average interest rate to 2 decimal places and final answers to the nearest whole dollar.) 2021 2022 Amount of interest
Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $5,700,000, 6% note $9,380,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2021 June 30, 2021 November 30, 2021 February 28, 2022 $3,370,000 5,370,000 1,674,000 2,370,000 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2021 and 2022. (Round weighted average interest rate to 2 decimal places and final answers to the nearest whole dollar.) 2021 2022 Amount of interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on April 30, 2022. No new
loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were
outstanding throughout the construction period:
$5,700,000, 6% note
$9,380,000, 10% bonds
Construction expenditures incurred were as follows:
March 31, 2021
June 30, 2021
November 30, 2021
$3,370,000
5,370,000
1,674,000
2,370,000
February 28, 2022
The company's fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2021 and 2022. (Round weighted average interest rate to 2 decimal places
and final answers to the nearest whole dollar.)
2021
2022
Amount of interest
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