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Thornton Industries began construction of a warehouse on July 1, 2024. The project was completed...

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Accounting

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, 12% note

$7,000,000, 7% bonds

Construction expenditures incurred were as follows:

July 1, 2024 $ 700,000
September 30, 2024 990,000
November 30, 2024 990,000
January 30, 2025 930,000

The companys fiscal year-end is December 31.

Required:

Calculate the amount of interest capitalized for 2024 and 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%).
Date Expenditure Weight Average
July 1, 2024 x =
September 30, 2024 x =
November 30, 2024 x =
Accumulated expenditures
Amount Interest Rate Portion of Year Outstanding Capitalized Interest
Average accumulated expenditures x % x =

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