A Limited embarked on the construction of a building on 1 January 2021. The construction costs of R1 100 000 were paid evenly from 1 January 2021 to 30 November 2021. The construction was completed on 30 November 2021. The construction was financed as follows:  

An average overdraft facility of R1 000 000 for the year. The interest incurred on the overdraft was R120 000 for the year. Interest is compounded on a quarterly basis.  

A loan raised specifically for this project o R1 000 000 raised on 1 July 2021 at 10% per annum, compounded on a quarterly basis; and o Surplus funds on specific loans were invested at 6% per annum, compounded on a quarterly basis. 

No repayments and interest payments were made on the loan. 

REQUIRED:

Provide all journal entries of A Limited relating to interest for the year ended 31 December 2021.