Question

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 the amount of interest capitalized for 2021 and 2022.

Complete this question by entering your answers in the tabs below.

• 2021
• 2022

Calculate the amount of interest capitalized for 2021. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)

• Complete this question by entering your answers in the tabs below.

• 2022

• Calculate the amount of interest capitalized for 2022. (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 Weight Average January 1, 2022 $6,591,000 x 3/3 = January 30, 2022 x 2/3 = $6,591,000 $0 Amount Interest Rate Capitalized Interest Average accumulated expenditures $0 x % x = $

Answer 1

Answer of * calculatea the amount of interest capitaliadd for doodle Papandi koc wright Average $ 420,000 215,000 Dati July 1, 2021 september 20.2021 November 30dod accumulated Expandateurs 6301000 630,000 x 32 x 1112 157,500 52,500 425,000 1690,000 capitalized Average accumulated Expenditures Amount 495,000 interestrat 7.24 interest 30,600: X = X100 weighted avenog interest vote = 64,000,000x94.] + [6,000,000 X6-1.] 4,000,000 +G000,000 X100 360,000 + 360,000 10,000,000 7201000 - Xroo 10,000,000 . = 72) * balance on Jan, 2022 = 1,690,000 + 30, 600 = 1,720,600

Pinterest capitalized for 2002. Armag! Date Jani, dobd Tan 30, 2012 Expenditure I 1,7201 600 wright 2012 1,720,600 5.70,000 ia 5 22,500 accumulald Experidende 2,240,600 2,243,100 Amount 22431100 Qurage accomulated expenditures capitalized interest 16150 3.2 interestrals 7.2-1.. X