Weld Corporation is constructing a plant for its own use. Weld Capitalize interest on an annual basis. The following expenditures are made during the current year: January 1, $30,000; July 1, $290,000; September 1, $800,000, and December 1, $2,110,000. The following debts were outstanding throughout the current year.

Construction Note, 12% $100,000

Short-term Note Payable, 15% $400,000

Accounts Payable (noninterest-bearing) $400,000

Required:

a. Please calculate the amount of interest to be capitalized during the year.

b. Please calculate the amount of interest expense for the year.

c. Please prepare summary journal entry for the year to record the construction expenditures and interest, assuming that construction is not complete on December 31.