Computing and Recording Interest Capitalization The following information is from Bowin inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company's own use. The capital expenditure on January 1, 2020, is for the purchase of land for the building site. No new construction loans were opened for the project in 2020. All debt was outstanding for the full year. Capital Expenditures for 2020 Date Amount Jan 1, 2020 $36.000 Mar 31, 2020 1,050.000 June 30, 2020 2.160.000 Nov. 30, 2020 100.000 oddns De Outstanding Debt in 2020 Debt Amount interest Rate Note payable 51.200.000 Note payable 960.000 Bond payable 2.400.000 10 Note payable 600 000 Finish attempt. ebook e Print Question 2 Partially correct Mar 13.00 out of 17.00 Pagestion Computing and Recording Interest Capitalization The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company's own use. The capital expenditure on January 1, 2020, is for the purchase of land for the building site. No new construction loans were opened for the project in 2020. All debt was outstanding for the full year. Capital Expenditures for 2020 Date Amount Jan 2020 536.000 Mar 31, 2020 1,080.000 June 30, 2020 20.000 Now, 2020 1.000.000 Outstanding Debt in 2020 Delt Debt Amount interest Rate 160.000 2.400.000 600.000 104 Answer the following questions Eindhenterest to be Answer the following questions: a. Compute interest to be capitalized and the interest to be expensed in 2020 b. Prepare the entry to record the construction expenditures and interest for 2020 c. Prepare the entry for depreciation in 2021 assuming that the project is completed on January 1, 2021. Assume that the bulding has a useful life of 30 years, and that the company uses the straight-line depreciation method Note: Do not round until your final answers, then round to nearest whole number a. Amount of interest to be capitalized $ 456.800 x Amount of interest to experse $ 456,800 x Cr D Account Name Land Coronin Process interest Expense Cach and Payables 36.000 435.000 284 554 X 4822.00 Cr Account Name Depreciation Expert Accurred Depreciation Dr 150,079 *50.079 Ched