None Current Attempt in ProgressOn July 31, 2025, Wildhorse Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery.Construction began immediately and was completed on November 1, 2025. To help finance construction, on July 31 Wildhorse issueda $284,400, 3-year, 10% note payable at Netherlands National Bank, on which interest is payable each July 31. $183,400 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 8% until November 1. On November 1, Wildhorse made a final $101,000 payment to Minsk. Otherthan the note to Netherlands, Wildhorse's only outstanding liability at December 31, 2025, is a $31,200, 6%, 6-year note payable,dated January 1, 2022, on which interest is payable each December 31.(a)× Your answer is incorrect.Calculate weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2025.Weighted-average accumulated expendituresAvoidable interestInterest capitalized$162800$16280$36640

The difference in interest paid between the current rate and the lower rate called as avoided…

rent Attempt in Progress On July 31, 2025, Wildhorse Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. onstruction began immediately and was completed on November 1, 2025. To help finance construction, on July 31 Wildhorse issued $284,400, 3-year, 10% note payable at Netherlands National Bank, on which interest is payable each July 31. $183,400 of the roceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable ecurities (trading securities) at 8% until November 1. On November 1, Wildhorse made a final $101,000 payment to Minsk. Other han the note to Netherlands, Wildhorse's only outstanding liability at December 31, 2025, is a $31,200, 6%, 6-year note payable, ated January 1, 2022, on which interest is payable each December 31. a) * Your answer is incorrect. Calculate weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2025. Weighted-average accumulated expenditures Avoidable interest Interest capitalized $ 162800 $ 16280 $ 36640

rent Attempt in Progress On July 31, 2025, Wildhorse Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. onstruction began immediately and was completed on November 1, 2025. To help finance construction, on July 31 Wildhorse issued $284,400, 3-year, 10% note payable at Netherlands National Bank, on which interest is payable each July 31. $183,400 of the roceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable ecurities (trading securities) at 8% until November 1. On November 1, Wildhorse made a final $101,000 payment to Minsk. Other han the note to Netherlands, Wildhorse's only outstanding liability at December 31, 2025, is a $31,200, 6%, 6-year note payable, ated January 1, 2022, on which interest is payable each December 31. a) * Your answer is incorrect. Calculate weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2025. Weighted-average accumulated expenditures Avoidable interest Interest capitalized $ 162800 $ 16280 $ 36640

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 13C

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On July 31, 2025, Wildhorse Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2025. To help finance construction, on July 31 Wildhorse issued a $284,400, 3-year, 10% note payable at Netherlands National Bank, on which interest is payable each July 31. $183,400 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 8% until November 1. On November 1, Wildhorse made a final $101,000 payment to Minsk. Other than the note to Netherlands, Wildhorse's only outstanding liability at December 31, 2025, is a $31,200, 6%, 6-year note payable, dated January 1, 2022, on which interest is payable each December 31. (a) Calculate weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2025. Weighted-average accumulated…
On July 31, 2025, Oriole Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2025. To help finance construction, on July 31 Oriole issued a $326,400, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $217,400 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, Oriole made a final $109,000 payment to Minsk. Other than the note to Netherlands, Oriole's only outstanding liability at December 31, 2025, is a $31,400, 8 %, 6-year note payable, dated January 1, 2022, on which interest is payable each December 31. (a) Calculate weighted average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2025. Weighted-average accumulated expenditures…
On July 31, 2020, Ivanhoe 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 Ivanhoe issued a $303,600, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $ 208,600 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, Ivanhoe made a final $ 95,000 payment to Minsk. Other than the note to Netherlands, Ivanhoe's only outstanding liability at December 31, 2020, is a $ 28,200, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. (a) Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020. Interest…
On July 31, 2020, Ivanhoe 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 Ivanhoe issued a $303,600, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $208,600 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, Ivanhoe made a final $95,000 payment to Minsk. Other than the note to Netherlands, Ivanhoe's only outstanding liability at December 31, 2020, is a $28,200, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. (a) Your answer is correct. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during…
Date 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 Schedule of Note Discount Amortization Debit Interest Expense / Credit Discount on Notes Payable $ Carrying Value of Note
On July 31, 2020, Marin 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 Marinissued a $270,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $169,000 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, Marin made a final $101,000 payment to Minsk. Other than the note to Netherlands, Marin’s only outstanding liability at December 31, 2020, is a $30,100, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. (a) Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020.…
On July 31, 2020, Marin 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 Marinissued a $270,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $169,000 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, Marin made a final $101,000 payment to Minsk. Other than the note to Netherlands, Marin’s only outstanding liability at December 31, 2020, is a $30,100, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. (a) Correct answer icon Your answer is correct. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total…
On December 31, 2020, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2024. Faital Company's credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $70,000 salvage value. Instructions (Round answers to the nearest cent.) a. Prepare the journal entry for the purchase on December 31, 2020. b. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2021. c. Prepare any necessary adjusting entries relative to depreciation and amortization on December 31, 2022.
On January 2, 2024, the Midwestern Steam Gas Corporation purchased an industrial furnace. In payment, Midwestern signed a noninterest - bearing note requiring $50,000 to be paid on December 31, 2025 (two years later). If Midwestern had borrowed cash to buy the furnace, the bank would have required an interest rate of 10% . Required: Record the journal entry for Midwestern for 1/2/2024, 12/31/2024, and 12/31/2025.
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PROBLEM:On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023?* 750,000 1,500,000 766,875 842,812.50 What amount shall be reported as interest payable on December 31, 2022?* 101,250 25,312.50 126,562.50 Zero How much is the interest expense for the year 2023?* 92,812.50 16,875 101,250 67,500 How much is the interest expense for the year 2022?* 25,312.50 126,562.50 101,250 135,000
) On July 31, 2020, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2020. To help finance construction, on July 31 Amsterdam issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $200,000 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, Amsterdam made a final $100,000 payment to Minsk. Other than the note to Netherlands, Amsterdam’s only outstanding liability at December 31, 2020, is a $30,000, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. Instructions a. Calculate weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020. (Round all…