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: $4,400,000, 6% note $18,960,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2024 June 30, 2024 November 30, 2024 February 28, 2025 $ 4,360,000 6,360,000 1,872,000 3,360,000 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. Amount of interest 2024 2025
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: $4,400,000, 6% note $18,960,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2024 June 30, 2024 November 30, 2024 February 28, 2025 $ 4,360,000 6,360,000 1,872,000 3,360,000 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. Amount of interest 2024 2025
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text: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:
$4,400,000, 6% note
$18,960,000, 10% bonds
Construction expenditures incurred were as follows:
March 31, 2024
June 30, 2024
November 30, 2024
February 28, 2025
$ 4,360,000
6,360,000
1,872,000
3,360,000
The company's fiscal year-end is December 31.
Amount of interest
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.
2024
2025
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