Capitalized interest On December 31, 2017, No Tricks, Inc. borrowed $1,000,000 at 10% payable annually to finance the construction of a new building. In 2018, the company made the following expenditures related to this building: June 1. $400,000: July 1, $600,000; September 1, $1,200,000: December 1, $600,000. Determine the amount of interest to be capitalized as of December 31, 2018. The building was completed in April 2019. Additional information is provided as follows. 1. Other debt outstanding 10-year, 8% bond, dated December 31, 2010, interest payable annually $10,000,000 15-year, 10% note, dated December 31, 2004, interest payable annually $2,500,000 2. Interest revenue earned in 2018 $6,000 (a) Compute Weighted-Average Accumulated Expenditures Date June 1 July 1 September 1 December 1 TOTAL Expenditures (b) Compute actual interest Capitalization Weighted-Average Accumulated Amount Period Expenditures (c) Compute avoidable interest (d) Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2018. Date Account Description Debit Credit