On December 31,2024, Sheffield Inc. borrowed $1,350,000 at 13% payable annually to finance the construction...

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Accounting

On December 31,2024, Sheffield Inc. borrowed $1,350,000 at 13% payable annually to finance the construction of a new building. In
2025, the company made the following expenditures related to this building: June 1,$540,000; July 1, $810,000; September 1,
$1,620,000; December 1,$810,000. The building was completed in April 2026. Additional information is provided as follows:
Other debt outstanding
10-year, 11% bond, dated December 31,2018, interest payable annually
$13,500,000
15-year, 13% note, dated December 31,2012, interest payable annually
$3,375,000
Interest revenue earned in 2025
$8,100
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