Problem 2: Interest Capitalization (15 points) Immediately after completing the purchase on April 30, 2021, JP's Aquariums began the construction of a 3-level parking garage. They paid the following invoices on the dates listed. Invoice Date Payment Date Payment Amount 5/31/2021 6/1/2021 $1,250,000 8/1/2021 9/30/2021 $2,500,000 10/30/2021 12/1/2021 $3,500,000 To support these payments, JP's Aquariums took out a construction loan on April 1, 2021 $1,100,000. The loan has an interest rate of 8%. In addition to this loan, JP's Aquariums had three other loans outstanding during the year, as follows: Loan Start Date Loan End Day Principal Interest Rate 1/1/1990 12/31/2022 $1,000,000 7% 6/30/1997 1/1/2025 $3,500,000 10% 8/15/1999 8/14/2029 $300,000 6% Assume the following: (1) all bonds pay interest on December 31, (2) all bonds are issued at par value, and (3) the parking garage was put into service on December 31, 2021. 2.1: Record the journal entry(ies) on December 31, 2021 for the TOTAL interest paid on all loans for the six months ended December 31, 2021, including any interest that needs to be capitalized. Problem 2: Interest Capitalization (15 points) Immediately after completing the purchase on April 30, 2021, JP's Aquariums began the construction of a 3-level parking garage. They paid the following invoices on the dates listed. Invoice Date Payment Date Payment Amount 5/31/2021 6/1/2021 $1,250,000 8/1/2021 9/30/2021 $2,500,000 10/30/2021 12/1/2021 $3,500,000 To support these payments, JP's Aquariums took out a construction loan on April 1, 2021 $1,100,000. The loan has an interest rate of 8%. In addition to this loan, JP's Aquariums had three other loans outstanding during the year, as follows: Loan Start Date Loan End Day Principal Interest Rate 1/1/1990 12/31/2022 $1,000,000 7% 6/30/1997 1/1/2025 $3,500,000 10% 8/15/1999 8/14/2029 $300,000 6% Assume the following: (1) all bonds pay interest on December 31, (2) all bonds are issued at par value, and (3) the parking garage was put into service on December 31, 2021. 2.1: Record the journal entry(ies) on December 31, 2021 for the TOTAL interest paid on all loans for the six months ended December 31, 2021, including any interest that needs to be capitalized