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Joe, Inc. constructs a building on land the company already owns. The construction started on April 1, 2010 and concluded on February 28, 2011. The
Joe, Inc. constructs a building on land the company already owns. The construction started on April 1, 2010 and concluded on February 28, 2011. The following information on Joe, Inc.'s bank loans is available: Construction Loan Other Loan (1) Other Loan (2) Date Borrowed 12/31/2009 12/31/2008 12/31/2007 Amount ($) Interest Rate Term 500,000 600,000 300,000 Annual 10% 6% 10 yrs 10yrs Joe, Inc. makes annual interest payments to the bank on December 31 of each year. During 2010, Joe, Inc. incurred the following costs in the construction of the building Exenditure Date 04/01/2010 06/01/2010 11/01/2010 Expenditure Amount ($) 600,000 150,000 300,000 What is the journal entry to record the interest payments made on December 31, 2010 and interest capitalization
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