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, 8% note $9,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2024 September 30, 2024 November 30, 2024 January 30, 2025 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025. Complete this question by entering your answers in the tabs below. 2024 $ 480,000 720,000 720,000 660,000 2025 Calculate the amount of interest capitalized for 2024. Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%). Expenditure Weight Average Date July 1, 2024 September 30, 2024 November 30, 2024 Accumulated expenditures $ $ 480,000 x 720,000 x 720,000 X 1,920,000 Amount Interest Rate 6/6 3/6 1/6 Portion of Year Quta = = H $ $ 480,000 360,000 120,000 960,000 Capitalized Interest

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, 8% note $9,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2024 September 30, 2024 November 30, 2024 January 30, 2025 The company's fiscal year-end is December 31. Required: Calculate the amount of interest capitalized for 2024 and 2025. Complete this question by entering your answers in the tabs below. 2024 $ 480,000 720,000 720,000 660,000 2025 Calculate the amount of interest capitalized for 2024. Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%). Expenditure Weight Average Date July 1, 2024 September 30, 2024 November 30, 2024 Accumulated expenditures $ $ 480,000 x 720,000 x 720,000 X 1,920,000 Amount Interest Rate 6/6 3/6 1/6 Portion of Year Quta = = H $ $ 480,000 360,000 120,000 960,000 Capitalized Interest

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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Subject : Accounting
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