Question
In: Accounting
Hawkins Corporation began construction on a motel on March 31, 2018. The project was completed on...
Hawkins Corporation began construction on a motel on March 31, 2018. The project was completed on April 30, 2019. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction periods:
$4,000,000 6% note
$16,000,000 10% bonds
Construction expenditures incurred were as follows:
March 31, 2018 $4,000,000
June 30, 2018 6,000,000
November 30, 2018 1,800,000
February 28, 2019 3,000,000
The company's fiscal year-end is December 31.
Calculate the amount of interest capitalized for 2018 and 2019.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Hawkins Corporation began construction of a motel on March 31, 2018. The project was completed on...
Hawkins Corporation began construction of a motel on March 31,
2018. The project was completed on April 30, 2019. No new loans
were required to fund construction. Hawkins does have the following
two interest-bearing liabilities that were outstanding throughout
the construction period:
$5,300,000, 6% note
$12,820,000, 10% bonds
Construction expenditures incurred were as follows:
March 31, 2018
$
3,730,000
June 30, 2018
5,730,000
November 30, 2018
1,746,000
February 28, 2019
2,730,000
The company’s fiscal year-end is December 31.
Required:
Calculate...
Hawkins Corporation began construction of a motel on March 31, 2018. The project was completed on...
Hawkins Corporation began construction of a motel on March 31,
2018. The project was completed on April 31, 2019. No new loans
were required to fund construction. Hawkins does have the following
two interest-bearing liabilities that were outstanding throughout
the construction period:
$4,000,000, 6% note
$16,000,000, 10% bonds
Construction expenditures incurred were as follows:
March 31, 2018
$4,000,000
June 30, 2018
6,000,000
November 30, 2018
1,800,000
February 28, 2019
3,000,000
The company's fiscal year-end is December 31.
Required:
Calculate the...
Hawkins Corporation began construction of a motel on March 31, 2021. The project was completed on...
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 period:
$4,100,000, 6% note
$16,740,000, 10% bonds
Construction expenditures incurred were as follows:
March 31, 2021
$
4,090,000
June 30, 2021
6,090,000
November 30, 2021
1,818,000
February 28, 2022
3,090,000
The company’s fiscal year-end is December 31.
Required:
Calculate...
Aberforth Dumbledore Corporation began construction of a tavern on March 31, 2021. The project was completed...
Aberforth Dumbledore Corporation began construction of a tavern
on March 31, 2021. The project was completed on April 30, 2022. No
new loans were required to fund construction. Aberforth Dumbledore
had the following debts that were outstanding throughout the
construction period: $4,700,000, 6% note $21,180,000, 9% bonds
Construction expenditures incurred were as follows: March 31, 2021
$ 4,630,000 June 30, 2021 6,630,000 November 30, 2021 1,926,000
February 28, 2022 3,630,000 What is Aberforth Dumbledore
Corporation's weighted average cost of debt?
X Company is constructing a building. Construction began in 2018 and the building was completed 31...
X Company is constructing a building. Construction began in
2018 and the building was completed 31 December, 2018. X made
payments to the construction company of $1,000,000 on 1 July,
$2,100,000 on 1 September, and $2,000,000 on 31 December. Average
accumulated expenditures were ------.
Select one:
a. $5,100,000.
b. $1,200,000.
c. $3,100,000.
d. $1,025,000.
The treasury stocks should be deducted from the stockholder’s
equity.
Select one:
a. True.
b. False.
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on...
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-bearing liabilities that were outstanding
throughout the construction period:
$2,000,000, 7% note
$8,000,000, 3% bonds
Construction expenditures incurred were as follows:
July 1, 2018
$
340,000
September 30, 2018
690,000
November 30, 2018
690,000
January 30, 2019
630,000
The company’s fiscal year-end is December 31.
Required:
Calculate...
Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on...
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-bearing liabilities that were outstanding
throughout the construction period:
$2,000,000, 7% note
$8,000,000, 3% bonds
Construction expenditures incurred were as follows:
July 1, 2018
$
340,000
September 30, 2018
690,000
November 30, 2018
690,000
January 30, 2019
630,000
The company’s fiscal year-end is December 31.
Required:
Calculate...
Deen Construction began a construction project in 2018. The contract price was $1,250,000, and the estimated...
Deen Construction began a construction project in 2018. The
contract price was $1,250,000, and the estimated costs were
$1,000,000. Data for each year of the contract are as follows:
2018
2019
2020
Costs incurred during the year
$250,000
$600,000
$190,000
Partial billings
$375,000
$500,000
$375,000
Estimated costs to complete
$750,000
$212,500
$0
Collections
$187,500
$469,000
$593,500
Instructions:
1. Assuming Deen the percentage of completion
method:
(a) Prepare a schedule that computes the gross
profit for 2018 - 2020
(b) Determine...
Swifty Corporation is constructing a building. Construction began on January 1 and was completed on December...
Swifty Corporation is constructing a building. Construction
began on January 1 and was completed on December 31. Expenditures
were $6480000 on March 1, $5310000 on June 1, and $8350000 on
December 31. Swifty Corporation borrowed $3200000 on January 1 on a
5-year, 12% note to help finance construction of the building. In
addition, the company had outstanding all year a 10%, 3-year,
$6390000 note payable and an 11%, 4-year, $11950000 note
payable.
What amount of interest should be charged to...
Red Man Construction is constructing a building. Construction began on January 1 and was completed on...
Red Man Construction is constructing a building. Construction
began on January 1 and was completed on December 31. Expenditures
were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on
December 31. Red Man borrowed $3,200,000 on January 1 on a 5-year,
12% note to help finance construction of the building. In addition,
the company had outstanding all year a 10%, 3-year, $6,400,000 note
payable and an 11%, 4-year, $12,000,000 note payable prepare all
entries that are necessary
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