On March 1, Psychedelic Furs Co. began construction of a small building. The following expenditures were incurred for construction March 1 April 1 $225,000 222,000 May 1 540,000 810,000 June 1 July 1 300,000 The building was completed and occupied on July 1. To help pay for construction $150,000 was borrowed on March 1 on a 10%, three-year note payable. The only other debt outstanding during the year was $1,500,000, 12% note issued 2 years ago. Instructions a) Calculate the weighted-average accumulated expenditures. (4 points) b) Calculate avoidable interest. (3 points) c) Calculate actual interest. (3 points) Answers a b C d) Record the journal entry for interest capitalization on July 1. (2 points) Accounts Dr Cr d