A building was built on land purchased last year at a cost of $315,000. Construction began on
Fantastic news! We've Found the answer you've been seeking!
Question:
A building was built on land purchased last year at a cost of $315,000.
Construction began on February 1 and was completed on November 1.
Payments to the contractor were as follows.
Payment Date
2/1 $252,000
6/1 756,000
9/1 1,008,000
11/1 210,000
To finance the construction of the building, a construction loan of $1,260,000 at 12% was obtained on February 1.
The loan was paid off on November 1. $420,000 of other debt outstanding during the year at a loan rate of 8%.
Record the acquisition of each of these assets
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Posted Date: