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:
| $3,000,000, 8% note | |||
| $5,000,000, 4% bonds | |||
Construction expenditures incurred were as follows:
| July 1, 2018 | $ | 660,000 | |
| September 30, 2018 | 930,000 | ||
| November 30, 2018 | 930,000 | ||
| January 30, 2019 | 870,000 | ||
The company’s fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2018 and
2019.
Homework Answers
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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...
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: $3,000,000, 6% note $5,000,000, 2% bonds Construction expenditures incurred were as follows: July 1, 2018 $ 540,000 September 30, 2018 750,000 November 30, 2018 750,000 January 30, 2019 690,000 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: $3,000,000, 8% note $9,000, 800, 4% bonds Construction expenditures incurred were as follows: July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 $ 48e, eae 720,899 720.99 660,800 120,00€ The company's fiscal year-end is December...
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, 34 bonds Construction expenditures incurred were as follows: July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 $ 340,000 690,000 690,000 630,000 The company's fiscal year-end is December 31. Required: Calculate...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. 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, 2021 $ 700,000 September 30, 2021 990,000 November 30, 2021 990,000 January 30, 2022 930,000 The company’s fiscal year-end is December 31. Required: Calculate...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $4,000,000, 9% note $6,000,000, 6% bonds Construction expenditures incurred were as follows: July 1, 2021 $ 430,000 September 30, 2021 630,000 November 30, 2021 630,000 January 30, 2022 570,000 The company’s fiscal year-end is December 31. Required: Calculate...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $4,000,000, 10% note $6,000,000, 5* bonds Construction expenditures incurred were as follows: July 1, 2021 September 30, 2021 November 30, 2021 $ 640,000 960,000 960,000 900,000 January 30, 2022 The company's fiscal year-end is December 31. Required: Calculate...
Exercise 10-25 Interest capitalization; multiple periods [LO10-7] Thornton Industries began construction of a...
Exercise 10-25 Interest capitalization; multiple periods [LO10-7] 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: $4,000,000, 9% note $6,000,000, 68 bonds Construction expenditures incurred were as follows: $ 430,000 630,000 630,000 570,000 July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 The...
Keiron Industries began construction of a warehouse on July 1, year 1. The project was completed...
Keiron Industries began construction of a warehouse on July 1, year 1. The project was completed on March 31, year 2. No new loans were required to fund construction. Keiron does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000,000, 10% note $7,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, year 1 September 30, year 1 November 30, year 1 January 30, year 2 $500,000 600,000 400,000 550,000 The company's fiscal year-end...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. 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, 8% note $8,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2021 September 30, 2021 November 30, 2021 January 30, 2022 $ 400,000 600,000 600,000 540,000 The company's fiscal year-end is December 31. Required: Calculate...
8 of 10 Keiron Industries began construction of a warehouse on July 1, year 1. The...
8 of 10 Keiron Industries began construction of a warehouse on July 1, year 1. The project was completed on March 31, year 2. No new loans were required to fund construction. Keiron does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000,000, 10% note $7,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, year 1 September 30, year 1 November 30, year 1 January 30, year 2 $500,000 600,000 400,000 550,000 The...
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: $3,000,000, 8% note $9,000, 800, 4% bonds Construction expenditures incurred were as follows: July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 $ 48e, eae 720,899 720.99 660,800 120,00€ The company's fiscal year-end is December...
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, 34 bonds Construction expenditures incurred were as follows: July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 $ 340,000 690,000 690,000 630,000 The company's fiscal year-end is December 31. Required: Calculate...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $4,000,000, 10% note $6,000,000, 5* bonds Construction expenditures incurred were as follows: July 1, 2021 September 30, 2021 November 30, 2021 $ 640,000 960,000 960,000 900,000 January 30, 2022 The company's fiscal year-end is December 31. Required: Calculate...
Exercise 10-25 Interest capitalization; multiple periods [LO10-7] 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: $4,000,000, 9% note $6,000,000, 68 bonds Construction expenditures incurred were as follows: $ 430,000 630,000 630,000 570,000 July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 The...
Keiron Industries began construction of a warehouse on July 1, year 1. The project was completed on March 31, year 2. No new loans were required to fund construction. Keiron does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000,000, 10% note $7,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, year 1 September 30, year 1 November 30, year 1 January 30, year 2 $500,000 600,000 400,000 550,000 The company's fiscal year-end...
Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. 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, 8% note $8,000,000, 4% bonds Construction expenditures incurred were as follows: July 1, 2021 September 30, 2021 November 30, 2021 January 30, 2022 $ 400,000 600,000 600,000 540,000 The company's fiscal year-end is December 31. Required: Calculate...
8 of 10 Keiron Industries began construction of a warehouse on July 1, year 1. The project was completed on March 31, year 2. No new loans were required to fund construction. Keiron does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $3,000,000, 10% note $7,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, year 1 September 30, year 1 November 30, year 1 January 30, year 2 $500,000 600,000 400,000 550,000 The...
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