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The following information is from Bowin Inc. for a long - term construction project that is expected to be completed in January of next year.
The following information is from Bowin Inc. for a longterm construction project that is expected to be completed in January of next year. The construction project is for a building intended for the company's own
use. The capital expenditure on January of the current year is for the purchase of land for the building site. No new construction loans were opened for the project during the year. All debt was outstanding for the
full year.
Compute Interest to Capitalize and Expense
Journal Entry in Year
Journal Entries in Year
b Prepare the summary entry to record the construction expenditures and interest for the year. Assume all payments are in cash.
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