X company purchased land in 2014 for new office complex at a cost of $400,000. On May 1, 2014, constructions of the office complex began 9the land was appraised at $425,000 on that due) construction was completed on October 1, 2015
Construction financing was obtained at an annual interest rate of %6. All construction borrowing was repaid on January 1, 2016 shoreline's financial year is the calendar year. During all of 2014 and 2015, Shoreline had the other following loan during 2014 and 2015
|
loan
|
Annual rate
|
Amount
|
Date of loan
|
Date of repayment
|
|
Bank a
|
4.5%
|
$180,000
|
June 1, 2014
|
July 1, 2016
|
|
Bank b
|
5.5%
|
$250,000
|
June 1, 2013
|
April 1, 2016
|
Expenditures for the building and draws against the construction loan agreement were as follows
|
Construction payments
|
|
Construction loans amount
|
|
|
June 1, 2014
|
600,000
|
June 1,2014
|
400,000
|
|
September 1, 2014
|
580,000
|
September 1,2014
|
600,000
|
|
|
|
|
|
|
February 1,2015
|
900,000
|
February 1,2015
|
600,000
|
|
March 1, 2015
|
750,000
|
March 1, 2015
|
500,000
|
|
October 1, 2015
|
350,000
|
|
|
Balance sheet asset titles and account balances (not including accumulated depreciation) relative the above transaction on
December 31, 2014
December 31, 2015