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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31,2019. No new loans were required to fund construction. Thornton does have the following two interest-bearingliabilities that were outstanding throughout the construction period:$2,000,000, 8% note$8,000,000, 4% bondsConstruction expenditures incurred were as follows:July 1, 2018 $400,000September 30, 2018 600,000November 30, 2018 600,000January 30, 2019 540,000The company’s fiscal year-end is December 31.Required:Calculate the amount of interest capitalized for 2018 and 2019.
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 1,962,000 3,810,000 November 30, 2024 February 28, 2025 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.
On January 1, 2024, the company obtained a $3 million construction loan with a 11% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2024 and 2025. The company’s other interest-bearing debt included two long-term notes of $4,800,000 and $6,800,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2024 and 2025. Interest is paid annually on all debt. The company’s fiscal year-end is December 31.
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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 September 1, 2018 December 31, 2018 $340,000 $510, 000 $510,000 $510,000 $340,000 March 31, 2019 September 3e, 2019 Dreamworld had $7,000,000 in 14% bonds outstanding through both years. Dreamworld's average accumulated expenditures for 2018 was:
Chapter : Fixed Assets On December 10, 2018, Stella contracted with Billys Construction to have a new building constructed for $1,600,000 on land owned by Tosewarld. The payments made by Stella to Billys Construction are shown in the schedule below. See table Additional Information : Construction was completed and the building was ready for occupancy on December 31, 2019. Stella had the following debt outstanding at December 31, 2019 : 17%, 3-year note of $800,000 to finance construction of building, dated December 31, 2018, with interest payable annually on December 31 (Specific Construction Debt) 13%, 5-year note payable of $800,000, dated December 31, 2015, with interest payable annually on December 31 10%, 10-year bonds issue of $850,000, bonds issued December 31, 2014, with interest payable annually on December 31 Instructions: a. Some interest cost of Stella is capitalized for the year ended December 31, 2019. Identify the items relating to interest costs that must be…