were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout
the construction period:
$6,000,000,8% note
$9,000,000,3% bonds
Construction expenditures incurred were as follows:
July 1, 2024 $580,000
September 30, 2024 870,000
November 30,2024,870,000
January 30, 2025 810,000
The company's fiscal year-end is December 31 .
Required:
Calculate the amount of interest capitalized for 2024 and 2025.
Complete this question by entering your answers in the tabs below.
2024
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% ).
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:
$6,000,000,8% note
$9,000,000,3% bonds
Construction expenditures incurred were as follows:
The company's fiscal year-end is December 31 .
Required:
Calculate the amount of interest capitalized for 2024 and 2025.
Complete this question by entering your answers in the tabs below.
2024
Calculate the amount of interest capitalized for 2025.
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% ).
were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period:
$6,000,000, 8% note $9,000,000, 3% bonds
Construction expenditures incurred were as follows:
July 1,2024 September 30,2024 November 30,2024 anuary 30,2025
$580,000 70,00 $70,000 810,000
The company's fiscal year-end is December 31.
Required: Calculate the amount of interest capitalized for 2024 and 2025.
Complete this question by entering your answers in the tabs below.
2024
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 x x x 0
Weight
Average
July 1, 2024 September 30, 2024 November 30, 2024 Accumulated expenditures
= =
0
Portion of Year Outstanding
Amount
Interest Rate
Capitalized Interest 0
Average accumulated expenditures
S
0x
%
Thornton Industries began construction of a warehouse on July 1,2024. The project was completed on March 31,2025. No new loans
the construction period
$6,000,000, 8% note $9,000,000,3% bonds
Construction expenditures incurred were as follows:
July 1,2024 September 30,2024 November 302024 January 30,2025
$580,000 870,000 870,000 810,000
The company's fiscal year-end is December 31.
Required: Calculate the amount of interest capitalized for 2024 and 2025
Complete this question by entering your answers in the tabs below.
2024
2025
Calculate the amount of interest capitalized for 2025. 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 January 1,2025 January 30, 2025
Expenditure
Weight
Average
x 0
=
S
S
0
Amount
Interest Rate
Portion of Year Capitalized Outstanding Interest %x =s 0
Average accumulated expenditures
S
x