11-77 and Capitalized 5 Dobie Industries began construction of a new plant for its own use on January 1, 2021. During the entirety of 2021, Dobie had the following debt outstanding. Accounts payable (noninterest-bearing). Short-term note payable (14%) Bonds payable (12%, issued at par). $ 80,000 500,000 1,300,000 On April 1, 2021, Dobie borrowed an additional $500,000 on a 14%, one-year construction note to help finance the plant construction. Interest on all debt is paid at the end of each quarter. The average accumulated expenditures on construction for each quarter of 2021 have already been computed. Assume that these amounts include amounts of previously capitalized interest. The payments and average accumulated expenditures follow. correct Payments to Contractors Weighted Average Accumulated Expenditures Quarter 1 2 3 4 $150,000 450,000 750,000 950,000 $150,000 300,000 675,000 850,000 Required a. Compute the interest cost to be capitalized and expensed each quarter. b. Record journal entries related to construction and interest cost for quarters one, two, three, and four. Record costs directly to the Building account