The following information is from Bowin Inc. for a long-term construction project that is expected...
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Accounting
The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January of next year. The construction project is for a building intended for the companys own use. The capital expenditure on January 1 of the current year is for the purchase of land for the building site. No new construction loans were opened for the project during the year. All debt was outstanding for the full year.
Capital Expenditures for Current YearDateActual ExpendituresJan. 1$54,000Mar. 311,620,000June 303,240,000Nov. 301,620,000
Outstanding Debt in Current YearDebtDebt AmountInterest RateNote payable$1,800,0008%Note payable1,440,0008%Bond payable3,600,00010%Note payable900,0009%
Journal Entry in Year 1
b. Prepare the summary entry to record the construction expenditures and interest for the year. Assume all payments are in cash.
Account NameDr.Cr.
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To record construction expenditures and interest
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