The Lambert Company begins a two-year construction project on a new building on January 1, 2018.The following information is available:

Capitalization period:January 1, 2018 - June 30, 2019

Expenditures related to the construction:

2018

Jan 1 $300,000

Apr 1600,000

Oct 1 700,000

Dec 1 400,000

2019

Jan 1$500,000 *

Apr 1 100,000

*Only includes construction cost incurred in January 2019.

Amounts borrowed and outstanding:

$1,000,000 at 9% borrowed specifically for project

$8,000,000 at 10%

$6,000,000 at 11%

Required:

What are the journal entries to record the interest capitalization for 2018 and 2019, respectively.