The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January of next year. The construction project is for a building intended for the company's own use. The capital expenditure on January 1 of the current year is for the purchase of land for the building site. No new construction loans were opened for the project during the year. All debt was outstanding for the full year. Capital Expenditures for Current Year Date Jan. 11 Actual Expenditures $54.000 Mar. 31 1420.000 June 30 3.240.000 Nov 30 1,620,000 Outstanding Debt in Current Year Delt Debit Amount loterest Rate Note payable $1,000,000 Note payable 1,440,000 Bond payable 3,600.000 10% Note payable 900.000 Compute Interest to Capitalize and Expense Journal Entry in Year 1 Journal Entries in Year 21 a. Compute (1) interest to be capitalized and (2) interest to be expensed, during the year. Calculation of Actual Interest Debt Amount Interest rate interest Amount Debr Specific Dett Construction loan 0 40 General Debt Note payable 0 03 Note payable 0 016 Blond payable O 0% Note payable 0 0 0 Total 0 Date Calculation of Weighted Average Accumulated Expenditures Expenditures Months Outstanding WA Accum. Expenditures January 11 S March 31 June 30 November 30 Total 0 05 0 5 Calculation of annual interest rate used in the schedule that follows Numerator + Denominator General Debt $ 0 $ 0 Interest Rate 96 Calculation of Avoidable Interest Weighted Average Accumulated Debt Category Expenditures Interest Rate Avoidable Interest Specific Debt $ 0 0% $ 0 General Debt 0 0 0 Total $ 0 $ 0 1. Capitalized Interest $ 0 2. Interest expense $ 0