Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hawkins corporation began construction of a motel

Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed...

80.2K

Verified Solution

Question

Accounting

image
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 perioduse Weighted average rate of all debt): $4,000,000, 6% note $16,000,000, 10% bonds Construction expenditures incurred were as follows: March 31, 2021 $4,000,000 June 30, 2021 6,000,000 1,800,000 February 28, 2022 3,000,000 November 30, 2021 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 1 decimal places.) 2021 2022 Amount of interest

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students