Question: A company constructs a building for its own use. Construction began on January 1 and ended on December 31. The expenditures for construction were as

A company constructs a building for its own use. Construction began

A company constructs a building for its own use. Construction began on January 1 and ended on December 31. The expenditures for construction were as follows: January 1, 2020 April 1, 2020 July 1, 2020 November 1, 2020 $800,000 300,000 400,000 600,000 The company arranged a construction loan on January 1 with the following terms: Face amount $700,000 Interest rate 9.00% The company's other borrowings, outstanding for the whole year, were as follows: $500,000 12.00% 300,000 8.00% Assume the company uses the specific interest method to capitalize construction interest. Record the journal entries for the construction and interest costs incurred during the year. Use formulas with cell references only. Formulas should work if different numbers are used. Debit Credit Date 12/31 Account Building Cash Construction costs for the year 12/31 Building Cash Capitalized interest for the year 12/31 Interest Expense Cash Other interest for the year

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