Question 2 of 8 0.11/1 III Show Attempt History Current Attempt in Progress On December 31, 2019, Sheridan Inc. borrowed $3,240,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building March 1,5388,800, June 1,5648,000: July 1. $1.620,000: December 1,51.620,000. The building was completed in February 2021. Additional information is provided as follows 1. $4,320,000 Other debt outstanding 10-year, 14% bond, December 31, 2013, Interest payable annually 6-year, 11% note, dated December 31, 2017, interest payable annually March 1, 2020, expenditure included land costs of $162.000 Interest revenue earned in 2020 $1.728.000 2 3. $S2.920 (a) 0.11/1 Your answer is partially correct Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, If any at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Debit Credit Account Titles and Explanation Interest Expense December 31, 2020 750423 Interest Payable Buildings 86577 e Textbook and Media Attempts: 1 of 2 used Submit Answer Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 1