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Capitalization of Interest: Please use the following information for Problems 18-20: On December...

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Accounting

Capitalization of Interest: Please use the following information for Problems 18-20:
On December 31,2011, Raddison Inc. borrowed $4,750,000 at 12% payable annually to finance the construction of a new building. In 2019, the company made the following expenditures related to this building: March 1, $1,100,000; June 1, $1,800,000; July 1, $4,500,000; December 1, $3,600,000. Additional information is provided as follows.
1. Other debt outstanding
10-year, 11% bond, December 31,2005, interest payable annually $8,000,000
6-year, 10% note, dated December 31,2009, interest payable annually $3,200,000
Find the weighted-average accumulated expenditures on the construction project, use grid below to assist with calculations:
Find Actual Interest:
Find Avoidable Interest
Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31,2019

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