Question
What is the journal entry to record the payment of interest at the end of 2022? 14. Al Ghamdi Co began construction on assets which
What is the journal entry to record the payment of interest at the end of 2022?
14. Al Ghamdi Co began construction on assets which cost SR1,500,000 on January 1, 2022. The weighted-average accumulated expenditures on these assets during 2022 was SR900,000. To help pay for construction, SR800,000 was borrowed at 8% on January 1, 2022. Funds not needed for construction were temporarily invested in short-term securities, earning SR20,000 in interest revenue during the year. Other than the construction loan, the only other debt outstanding during the year was a SR550,000, 10-year, 10% note payable dated May 1, 2019.
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
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