Recording Costs for Self Constructed Asset Ameth Company constructed a building and incurred the following costs directly associated with construction. The building is valued at $77,500 (fair value) upon completion. Materials Labor $25,000 40,000 15,000 2,500 1,000 $83,500 Incremental overhead Interest on construction loan incurred before completion Interest on construction loan incurred after completion Total Prepare summary journal entries to record costs of (1) construction and (2) completion of the building. Assume that all qualifying interest during the current year is capitalized to the building. Account Name Dr. Cr. To record the costs of construction. To record the completion of the building.

Recording Costs for Seif Constructed Asset