Russell Enterprises is building a mini-storage facility and office. Total cost is estimated to be $800,000.

The project began on July 1, 2023 and should be completed in 2024.

Russell Enterprises has the following debt outstanding:

• Construction loan signed August 1, 2023 for $80,000; interest rate = 5%
• Non-construction debt:
  • 5-year loan signed March 1, 2023 for $300,000; interest rate = 4%
  • 10-year loan signed in 2020 for $400,000; interest rate = 3%

Russell Enterprises made the following progress payments to the contractor in 2023:

• August 1 $50,000
• September 30 $100,000
• November 1 $300,000
• December 1 $200,000

Total $650,000

Instructions: For the year ended December 31, 2023, complete the following:

a. Compute actual interest for 2023

b. Compute weighted average accumulated expenditures for 2023

c. Compute avoidable interest for 2023 using the Specific Interest Method.

If you need to compute an interest rate, round to 4 decimals places.

For example, 0.12935726 would round to 0.1294. (not 0.13)

d. Prepare the journal entry at 12/31/23 for the capitalization of interest by Russell Enterprises.

Assume interest costs have been paid, and they were recorded in the Interest Expense account.

e. Show income statement presentation of Interest Expense for the year ended 12/31/23

f. Recompute Avoidable Interest using the Weighted Average Method. When you compute the interest rate, show your work and round to 4 decimal places.

SHOW ALL WORK PLEASE!!!!!