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On December 31, 2016, Metlock Inc. borrowed $990,000 at 12% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: June 1, $396,000; July 1, $594,000; September 1, $1,188,000; December 1, $594,000. The building was completed in April 2018. Additional information is provided as follows. 1. Other debt outstanding 10-year, 10% bond, dated December 31, 2010, interest payable annually $9,900,000 15-year, 12% note, dated December 31, 2004, interest payable annually $2,475,000 2. Interest revenue earned in 2017 $5,940 (a) Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building. (Round answer to O decimal places, e.g. 5,125.) The amount of interest $ e Textbook and Media
Your answer is partially correct. Try again. 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 o for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 Buildings