On January 1, 2024, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2025 The company borrowed $2,200,000 at 8% on January 1 to help finance the construction in addition to the construction loan, Highlands had the following debt outstanding throughout 2024 $9,000,000, 10% bonds $6,000,000, 8%, long term note Construction expenditures incurred during 2024 were as follows January 1 March 31 June 30 September 30 December 31 Required: Calculate the amount of interest capitalized for 2024 using the specific interest method Note: Do not round the Intermediate calculations. Round your percentage answers to 1 decimal place (1.e. 0.123 should be entered es 12.3%). Date $ 900,000 1,500,000 1,160,000 900,000 700,000 January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Expenditure S Average accumulated expenditures S Amount 0 0 X X X x Weight Interest Rate = m = M = = Average S Capitalized Interest S S 0 0 0 0 Prev # Nehm
On January 1, 2024, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2025 The company borrowed $2,200,000 at 8% on January 1 to help finance the construction in addition to the construction loan, Highlands had the following debt outstanding throughout 2024 $9,000,000, 10% bonds $6,000,000, 8%, long term note Construction expenditures incurred during 2024 were as follows January 1 March 31 June 30 September 30 December 31 Required: Calculate the amount of interest capitalized for 2024 using the specific interest method Note: Do not round the Intermediate calculations. Round your percentage answers to 1 decimal place (1.e. 0.123 should be entered es 12.3%). Date $ 900,000 1,500,000 1,160,000 900,000 700,000 January 1 March 31 June 30 September 30 December 31 Accumulated expenditure Expenditure S Average accumulated expenditures S Amount 0 0 X X X x Weight Interest Rate = m = M = = Average S Capitalized Interest S S 0 0 0 0 Prev # Nehm
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 6PB
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