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On December 31, 2024, Coronado Inc. borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made
On December 31, 2024, Coronado Inc. borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $446,400; June 1, $744,000; July 1, $1,860,000; December 1, $1,860,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $186,000. Interest revenue of $60,760 earned in 2025. $4,960,000 1,984,000 On December 31,2024 , Coronado inc borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures refated to th's buliding: March 1, 54,46,400; June 1, 5744,000 ; July 1. $1,860,000; December 1,$1,860,000. The building was completed in February 2026. Additional information is provided as follows Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31 , 2025. (Credit account titles are dutomatically indented when amount is entered. Do not indent manuolly. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts, List oll debit entries before credit entries.)
On December 31, 2024, Coronado Inc. borrowed $3,720,000 at 13% payable annually to finance the construction of a new building. In 2025, the company made the following expenditures related to this building: March 1, $446,400; June 1, $744,000; July 1, $1,860,000; December 1, $1,860,000. The building was completed in February 2026. Additional information is provided as follows. 1. 2. 3. Other debt outstanding: 10-year, 14% bond, December 31, 2018, interest payable annually 6-year, 11% note, dated December 31, 2022, interest payable annually March 1, 2025, expenditure included land costs of $186,000. Interest revenue of $60,760 earned in 2025. $4,960,000 1,984,000
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