During 2012 Daveco constructed a new building on land it already owned. In order to finance the construction, on January 1, Daveco took out a $100,000 8% loan, and it already had two other outstanding notes: a $400,000, 8% bond and a $300,000 7% note, both with interest due on December 31. The construction job began on January 1,2012 and was completed on August 31,2012 Payment to contractor were as follow:
January 1: $100,000
February1: $200,000
August 31: $100,000
Record the journal entry for interest on December 31,2012