Date A) Capitalization of Interest (9 points) Early in 2017, Al- Pinar Manufacturing Dairy Products Co. engaged Nabali & Fares Construction Co to design and construct a complete modernization of Pinar's manufacturing facility. Construction was begun of February 1, 2018 and was completed on November 30, 2018 Pinar made the following payments to Nabali & Fares Construction Co. during 2018: Payment Construction perod 10 month February 1, 2018 $360,000 July 30, 2018 540,000 August 31, 2018 450,000 October 1, 2018 450,000 10 November 1, 2018 600,000 November 30, 2018 100,000 In order to help finance the construction, Pinar issued the following during 2018: $650,000 Construction manufacturing facility loan issued on February 1, 2018, 2-year, 12% interest, payable annually December31. Additional information is provided for other debt outstanding as follows: 1. $100,000, 10-year, 10% bond, December 31, 2017, interest payable annually. $50,000. 12% note payable, 5-year, issued January 1. 2018. interest payable annually Required a) Compute the weighted average accumulated expenditures qualifying for capitalization of interest cost for 2018, using the following table. (6 points) 6 Expenditures Capitalization Period Weighted -Average Accumulated Expenditures Date Amount Feb. 1 $360,000 10/12 300,000 180,000 July 30 540,000 1112 Aug. 31 450,000 3/12 112.500 Oct. 1 450,000 2/12 75000 Nov. 1 600,000 50,000 1/12 0/12 Nov. 30 100,000 717,500 Total Weighted -Average Accumulated Expenditures b) Prepare the journal entry to record the capitalization of interest and the recognition of interest rynense, if any, at December 31, 2018 13 points)