1. Assume a company borrowed $450,000 at 12% interest from State Bank on Jan. 1, 2020, for specific purposes of constructing a building for the company. Construction on the building began on Jan. 1, 2020, and the following expenditures were made prior to the projects completion on December 31, 2020:

Jan 1 $500,000

Apr 1 200,000 Other general debt existing on Jan. 1, 2020:

May 1 100,000 $650,000, 10%, 10 year note payable

Aug 1 125,000 $400,000, 8%, 10 year bond payable

Dec 1 250,000

2. Assume a company borrowed $300,000 at 10% interest from State Bank on Jan. 1, 2020, for specific purposes of constructing a building for the company. Construction on the building began on Jan. 1, 2020, and the following expenditures were made prior to the projects completion on December 31, 20120:

Jan 1 $275,000

Mar 1 450,000 Other general debt existing on Jan. 1, 2020:

Apr 1 250,000 $450,000, 12%, 10 year bond payable

Nov 1 125,000 $575,000, 11%, 6 year note payable

Dec 1 75,000