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On January 15, 2020 a company started constructing an office building and it was not yet complete at their fiscal year end of December 31,

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On January 15, 2020 a company started constructing an office building and it was not yet complete at their fiscal year end of December 31, 2020. The office building is a qualifying asset and the company has decided to implement the borrowing cost standard. The direct cost incurred on the construction project in 2020 was as follows: January 15 February 28 May 1 July 30 October 30 $150,000 240,000 280,000 96,000 220,000 All of the costs have been debited to the Construction in progress account. The company took a loan for the project of $450,000 on February 28. The annual interest rate is 5%. The company's existing borrowings are a bank loan of $3,000,000 at 4% and a note payable of $300,000 with a 4.5% interest rate. The bank loan was taken out on April 1, 2020. The total cost of the project should be recorded in a long-term asset account "Building under construction." Required Prepare the necessary adjusting entries at December 31, 2020 to record the asset and the capitalization of borrowing costs

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