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Exercise 10-08 On December 31, 2019, Pearl Inc, borrowed $3,780,000 at 13% payable annually to finance the construction of a new busing in 2020, the comany made the following expenditures related to this building: March 1, 5453,600; June 1, 5756,000; Mly 1, 51,890,000: December 1, 51,090,000. The busing was completed in February 2021. Adonanormation is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2013, interest payable anually $1640.000 6-year, 11% no dabe December 31, 2017 interest payable annually $2.015.000 2. March 1, 2020, expenditure included and costs of $199,000 3. Interest revenue earned in 2020 Determine the amount of interest to be capital in 2020 relation to the construction of the s ong The amount of interest w Prepare your entry to record the caption of interest and the recorte amount is entered. Do not indent manually. If no entry is required, select "No Entry for the 200 dar ) Date Account the end plantion December 31, 2020 Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, December 31, 2020. (Credit account tres are automatically indented when amount is entered. Do not indent manually. If he entry is required, select "No Entry for the account titles and enter for the amounts.) 10-15 Date Account Titles and Explanation December 31, 2020 by Study Click if you would like to show Work for this questioni Open Show Work SHOW LIST OF ACCOUNTS

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