On September 1, 2020, Fern Bhd purchased a store building for $180,000. The marketing department immediately put the shop building to use. A further $20,000 had been spent on a small repair of the shop building by Fern Bhd. On September 1, 2020, the renovation will commence. However, because to a covid-19 case involving two of the renovation workers, the work was halted for two weeks. The renovations will resume on September 15 and will be finished on September 30, 2020. The company had previously appealed to Mine Bank for a $200,000 loan to help finance the purchase and modest repair of the shop building. On July 4, 2020, Mine Bank granted a five-year term loan with a borrowing cost of 3% per year. Beginning on July 31, 2020, Dawn Bhd made a monthly payment of $3,844 to Mine Bank. The shop building, like the rest of the company's structures, is depreciated using the straight-line approach. The shop building's and renovation's anticipated useful lives are 40 and 5 years, respectively.

In accordance with the appropriate MFRS, advise on the accounting treatment of borrowing expenses.

Prepare the appropriate journal entries for the financial year that concluded on December 31, 2020.