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S Company contracted with P Construction Co. to have a building constructed for ? 3,000,000 on land costing F 200,000. The land was purchased from
S Company contracted with P Construction Co. to have a building constructed for ? 3,000,000 on land costing F 200,000. The land was purchased from the contractor and included in the rst payment. S made the following payments to the construction company during the 20C2: December31 P420900 P1980900 P3900900 Construction was completed and the building was ready for occupancy at the end of 20C2. S Company had the following debt outstanding at December 31, 20C2: 15%, 3year note to finance acquisition of land and construction of the building dated December 31, 20C1, with interest a able annuall on December 31 P 1,500,000 10%, 5year note payable, dated December 31, 20C1, with interest payable annually on December 31 1 100 000 12%, 10year bonds issued December 31, 20C1, with interest payable annually on December 3 1. 1 ,200 ,000 Prepare the necessary journal entries
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