Alpesh On January 1, 2024, the Highlands Company began construction on a new manufacturing facility for its own use. The building wascompleted in 2025. The company borrowed $1,800,000 at 7% on January 1 to help finance the construction. In addition to theconstruction loan, Highlands had the following debt outstanding throughout 2024:$9,000,000, 12% bonds$6,000,000, 7% long-term noteConstruction expenditures incurred during 2024 were as follows:January 11March 31-June 30September 30December 31January 1March 31June 30Required:Calculate the amount of interest capitalized for 2024 using the specific interest method.Note: Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be enteredas 12.3%).Date$ 780,0001,380,0001,016,000September 30December 31Accumulated expenditure780,000580,000Expenditure$Average accumulated expenditures $Amount00XXXXXxWeightInterestRate%.M.$AverageCapitalizedInterest$0

Interest capitalize: The unpaid interest on your loan is added to the principal amount, which is…

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 $1,800,000 at 7% 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, 12% bonds. $6,000,000, 7% long-term note Construction expenditures incurred during 2024 were as follows: January 11 March 311 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 (i.e. 0.123 should be entered as 12.3%). Date $ 780,000 1,300,000 1,016,000 780,000 580,000 January 11 March 31 June 30 September 30 December 31. Accumulated expenditure Expenditure S Average accumulated expenditures $ Amount 0 0 X X X Weight Interest Rate % . Average S Capitalized Interest $ 0

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 $1,800,000 at 7% 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, 12% bonds. $6,000,000, 7% long-term note Construction expenditures incurred during 2024 were as follows: January 11 March 311 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 (i.e. 0.123 should be entered as 12.3%). Date $ 780,000 1,300,000 1,016,000 780,000 580,000 January 11 March 31 June 30 September 30 December 31. Accumulated expenditure Expenditure S Average accumulated expenditures $ Amount 0 0 X X X Weight Interest Rate % . Average S Capitalized Interest $ 0

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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