Question: On MAY 1, 2019 Angel's Construction started a manufacturing facility completed on March 31, 2020, and below are direct costs incurred on the project in

On MAY 1, 2019 Angel's Construction started a manufacturing facility completed on March 31, 2020, and below are direct costs incurred on the project in 2019:

May 1 /July 31/ October 30 /December 1

3,000,000 /4,800,000/4,000,000/100,000

All the costs were debited to the" Construction in Progress account", and Angel's Construction took a loan of $3,200,000 on June 1, 2019. The annual interest rate is 3%.

The Angel's Construction Borrowing are below:

Bank loan, 5% issued March 1, 2019, $8,000,000

Note payable 3% issued September 30, 2018, $2,000,000

The total cost of will be recorded in the long-term asset account "Manufacturing Facility under construction"

Prepare the necessary adjusting entries at December 31, 2019 to record the asset and the capitalization of borrowing costs.

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