On July 31, 202O, Teal Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery.Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Teal issued a$282,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $177,000 of theproceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketablesecurities (trading securities) at 10% until November 1. On November 1, Teal made a final $105,000 payment to Minsk. Other than thenote to Netherlands, Teal's only outstanding liability at December 31, 2020, is a $28,900, 8%, 6-year note payable, dated January 1,QAceQuAc2017, on which interest is payable each December 31.VieAcCalculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to becapitalized during 2020.QueAccouInterest revenueQueAccourWeighted-average accumulated expendituresQuesAccounAvoidable interestQuestMultipleInterest capitalized%24%24%24%24 Prepare the journal entries needed on the books of Teal Company at each of the following dates. (Credit account titles greautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter 0 for the amounts.)(1)July 31, 2020.(2)November 1, 2020.(3)December 31, 2020.DateAccount Titles and ExplanationDebitCredit(To record the note.)(To record the payment to Minsk.)(To record the payment to Minsk.)(To record the payment to Minsk.)12/31A>

The question is based on the concept of Financial Accounting.

On July 31, 202O, Teal Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Teal issued a $282,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $177,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Teal made a final $105,000 payment to Minsk. Other than the note to Netherlands, Teal's only outstanding liability at December 31, 2020, is a $28,900, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020. Interest revenue 2$ Weighted

On July 31, 202O, Teal Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction begun immediately and was completed on November 1, 2020. To help finance construction, on July 31 Teal issued a $282,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $177,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Teal made a final $105,000 payment to Minsk. Other than the note to Netherlands, Teal's only outstanding liability at December 31, 2020, is a $28,900, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020. Interest revenue 2$ Weighted

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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