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  3. on december 31, 2019. flint inc. borrowed $3,600.0

On December 31, 2019. Flint Inc. borrowed $3,600.000 at 13% payable annually to finance the...

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Accounting

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On December 31, 2019. Flint Inc. borrowed $3,600.000 at 13% payable annually to finance the construction of a new building In 2020, the company made the following expenditures related to this building March 1, $432.000; June 1. $720,000: July 1, $1,800,000: December 1, $1,800,000. The building was completed in February 2021. Additional information is provided as follows 1. $4,800,000 Other debt outstanding 10-year, 14% bond, December 31, 2013 interest payable annually 6-year, 11% note, dated December 31, 2017 interest payable annually March 1, 2020, expenditure included land costs of $180,000 $1.920,000 2. 3. Interest revenue earned in 2020 $58,800 (a) Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building The amount of interest $ (b) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) ite Account Titles and Explanation Debit Credit r 31, 2020

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