On May 1, 2018, The Tomlinson started constructing a manufacturing facility completed on March 31, 2019. the following information is about the direct costs incurred on the construction project in 2018:

May 1 /July 31 /October 30 /December 1

2,900,000 /4,200,000 /4,000,000 /160,000

All the costs were debited to "the Construction in Progress account". The Tomlinson had a loan for the project of $3,600,000 on June 1, 2018. The annual interest rate is 6%.

The Tomlinson's borrowings include: Bank loan, 6% issued March 1, 2018/ $8,000,000

Note payable 4% issued September 30, 2017 /$2,650,000

The total cost of the manufacturing facility will be recorded in the long-term asset account, 'Manufacturing Facility under construction."

Prepare the necessary adjusting entries at December 31, 2018 to record the asset and the capitalization of borrowing costs.