Prepare the entry that should have been made at the date of each acquisition.

E$10\mathrm{.}7($LO $2)($Capitalization of Interest$)$ Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $$5,000,000$ on $$January$1,2020.$ Harrisburg expected to complete the building by December $31,2020.$ Harrisburg has the following debt obligations outstanding during the construction period.

Construction loan$12\%$ interest, payable semiannually, issued December $31,2019$

$$2,000,000$

Short$-$term loan$10\%$ interest, payable monthly, and principal payable at maturity on May $30,2021$

$1,400,000$

Long$-$term loan$11\%$ interest, payable on January $1$ of each year. Principal payable on January $1,2024$

$1,000,000$