What is the journal entry to record the payment of interest at the end of 2022? 14.
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What is the journal entry to record the payment of interest at the end of 2022?
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14. Al Ghamdi Co began construction on assets which cost SR1,500,000 on January 1, 2022. The weighted-average accumulated expenditures on these assets during 2022 was SR900,000. To help pay for construction, SR800,000 was borrowed at 8% on January 1, 2022. Funds not needed for construction were temporarily invested in short-term securities, earning SR20,000 in interest revenue during the year. Other than the construction loan, the only other debt outstanding during the year was a SR550,000, 10-year, 10% note payable dated May 1, 2019. 14. Al Ghamdi Co began construction on assets which cost SR1,500,000 on January 1, 2022. The weighted-average accumulated expenditures on these assets during 2022 was SR900,000. To help pay for construction, SR800,000 was borrowed at 8% on January 1, 2022. Funds not needed for construction were temporarily invested in short-term securities, earning SR20,000 in interest revenue during the year. Other than the construction loan, the only other debt outstanding during the year was a SR550,000, 10-year, 10% note payable dated May 1, 2019.
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Debit Interest Expense 45000 Credit Cash 45000 Explanation The journal entry ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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