Construction began on Jan. 1 and ended on Dec. 31. Borrowed $1,000,000 on a 5-year, 12% note to finance the construction

Expenditures throughout the year are:

March 1 $1,800,000

June 1 $1,200,000

December 31 $3,000,000

Outstanding debts all year:

10%, 5-year $2,000,000 note payable

11%, 4-year $3,500,000 note payable

Calculate 1) weighted average expenditure; 2) weighted interest rate for the general debts;

3) avoidable interest; 4) actual interest; and 5) prepare journal entry to record capitalized interest.

(Show your work)