#1 2 pts. The Iron River Corporation borrowed money from the bank on December 31, 2020 to finance construction of a new building Principal borrowed from the bank $ 2,100,000 Annual interest rate 8% In 2021, the company made the following expenditures related to this building: 1-Mar $ 450,000 1-Jun $ 1,600,000 1-Jul $ 1,600,000 1-Dec $ 2,200,000 The building was completed in February 2022. Additional information is provided as follows: Other debt outstanding: 10-year, 13% bond, dated December 31, 2013, interest payable annually $ 4,000,000 6-year, 10% note, dated December 31, 2017, interest payable annually $ 1,600,000 March 1, 2021 expenditure included land costs of: $ 200,000 Record one journal entry to record (1) the capitalization of interest and (2) the recognition of interest expense, if any, and 3) payment of actual interest at December 31, 2021. Show all your work in supporting schedules below. Reference cells. Add rows and columns when you need them. Schedule 1: Weighted Average Accumulated Expenditures: Schedule 2: Computation of Avoidable Interest: Schedule 3: Computation of Actual Interest: Date Account Names Debit Credit #2 2 pts. The Emmett Corp. negotiated the purchase of a new piece of automatic equipment for cash plus a trade-in of a used piece of equipment. Details are presented below. Complete Schedules 1 and 2 below to support the numbers used in the journal entry to record the exchange. Reference cells. DATA: Cash payment for new equipment 7,000 Original cost of used equipment traded in 60,000 Book value of used equipment 42,000 Fair value of used equipment 47,800 Freight and installation cost of new equipment 1,100 Schedule 1: Calculation of Gain/Loss on Disposal of Old Equipment Schedule 2: Calculation of Valuation of New Equipment Account Names Debit Credit Check column totals