User Account

All Pages

Calculate the amount of interest capitalized

Assignment Help Accounting Basics
Reference no: EM132047511

Question - Hawkins Corporation began construction of a motel on March 31, 2016. The project was completed on April 31, 2017. 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% note

Construction expenditures incurred were as follows:

March 31, 2016 $4,000,000

June 30, 2016 $6,000,000

November 30, 2016 $1,800,000

February 28, 2017 $3,000,000

The company's fiscal year-end is December 31.

Required: Calculate the amount of interest capitalized for 2016 and 2017.

Reference no: EM132047511

Questions Cloud

Explain the use of atleast two strategy matrix covered : Explain the use of atleast two strategy matrix covered in the course. How would you adapt the matrix for use in 2-3 specific industries?
What could be changed with the culture of the organization : Describe the culture of the organization and how the symbols convey the culture - Describe the strengths and weaknesses of the organization from a cultural
Explain the value of coaching : Explain why it is necessary to monitor an employee's performance during and after they have received coaching.
Common method for compensating team : As a manager what is a common method for Compensating your team that isnt standard pay?
Calculate the amount of interest capitalized : Hawkins Corporation began construction of a motel on March 31, 2016. Calculate the amount of interest capitalized for 2016 and 2017
Callable-perpetual bonds with annual coupon payments : Bowdeen Manufacturing intends to issue callable, perpetual bonds with annual coupon payments. What coupon rate should bonds have in order to sell at par value.
Strategy versus a company using a differentiation strategy : How might recruitment differ for a company focused on a low-cost strategy versus a company using a differentiation strategy?
Explain to me behaviour modification theory : What can be two causes of inappropriate behaviours? What are ways that can be implemented to overcome these problems?
Business intelligence reporting and dashboard concepts : Many researchers challenge traditional Business Intelligence reporting and dashboard concepts by introducing

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the four basic financial statements

What are the four basic financial statements? What is the primary purpose of each of the four basic financial statements? In your opinion, which financial statement is the most important? Explain why.

  Prepare a comprehensive report directed to an australian asx

Students are required to prepare a comprehensive report directed to an Australian ASX Top 100 listed corporation

  Determining the overall audit approach

The auditor must assess this risk as a basis for identifying areas most likely to be misstated as well as a basis for determining the overall audit approach and extent of procedures to be performed. Do you agree? Please explain.

  A down payment of 34000 in cash was made on additional

a down payment of 34000 in cash was made on additional computer equipment that was purchased for 170000. a five year

  A new client for your firm is sam jones who is preparing

nbspmr. jones states that such benefits meet the definition of an asset. woulda you agree to allow a new client for

  Compare and contrast the three different vendors

Compare and contrast the three different vendors. Be sure to consider the services, data solutions, and security features they provide.

  What adjustment should reese make on december

Under the accrual accounting, what adjustment should Reese make on December 31, 2004

  Differentiate between value investing and growth investing

Warren Buffet, one of the most successful investors in the world, made the following comment about his investment emphasis: "We simply attempt to be fearful.

  Compute dow earnings per share problem

On February 28, 2009, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31,2009, was $2,100,000. The income tax rate is 40%.

  Indicate journal entry to be made to record the transaction

Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction

  Determine the number of equivalent units of production in

inventory in process 6-1nbspnbsp25 completed1500 unitstransferred to finished goodsnbspnbspduring june5000

  Shine corporation purchased 30 percent of the common stock

shine corporation purchased 30 percent of the common stock of ash corporation on january 1 2007 at 28000 in excess of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd