On January 1, 2021, the Mont Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021:

$5,000,000, 12% bonds

$3,000,000, 8% long-term note

Construction expenditures incurred during 2021 were as follows:

January 1	$ 600,000
March 31	1,200,000
June 30	800,000
September 30	600,000
December 31	400,000

Create journal entries for interest expense, capitalized interest, and construction costs