During 2012 Daveco constructed a new building on land it already owned. In order to finance the…

During 2012 Daveco constructed a new building on land it already owned. In order to finance the construction, on January 1, Daveco took out a $100,000 8% loan, and it already had two other outstanding notes: a $400,000, 8% bond and a $300,000 7% note, both with interest due on December 31. The construction job began on January 1, 2012 and was completed on August 31, 2012 Payment to contractor were as follow: January 1: ………… $100,000 February1: ……….. $200,000 August 31: ……….. $100,000 Record the journal entry for interest on December 31, 2012.

 

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