Construction was begun on the new storage facility on June The architect fees were $40,000. Construction is estimated to cost $5,000,000. P3 borrows $2,000,000 at 10% for the construction costs. P3’s other borrowings are $3,600,000 at 12% and $9,200,000 at 9%. The building will have an $80,000 residual value and a 20-life. Other facts regarding the constriction project are: Costs for the month of June were $840,000. Assume construction costs are temporarily capitalized to Construction in Progress until completion of the project. Construction costs for the month of July were $1,000,000 Construction expenditures in August were $2,300,000. Construction expenditures in September were $860,000. The building was completed September 22nd. after resolve it, record journal
