1. Prepare the journal entries to record the expenditure on Feb 1, Aug 31 and Dec 31.

2. Prepare the journal entries to record the actual interest, Accrued interest and capitalization of interest in a compound journal entries on December 31, 2019.

PROBLEM 1 During 2019, Barden Building Company constructed various assets at a total cost of 8,400,000. Barden made the following payments related to the construction during 2019: Date Payment February 1, 2019 5,600,000 August 31, 2019 2,400,000 December 31, 2019 400,000 The company had the following debt outstanding at December 31, 2019: 1. 10%, 5-year note to finance construction of various assets, dated January 1, 2019, with interest payable annually on January 1 3,600,000 2. 12%, ten-year bonds issued at par on December 31, 2013, with interest payable annually on December 31 4,000,000 3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually on January 1 2,000,000