On July 31, 2017, Wildhorse Company engaged Minsk Tooling Company to construct a special-purpose piece of...

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On July 31, 2017, Wildhorse Company engaged Minsk ToolingCompany to construct a special-purpose piece of factory machinery.Construction was begun immediately and was completed on November 1,2017. To help finance construction, on July 31 Wildhorse issued a$328,800, 3-year, 12% note payable at Netherlands National Bank, onwhich interest is payable each July 31. $232,800 of the proceeds ofthe note was paid to Minsk on July 31. The remainder of theproceeds was temporarily invested in short-term marketablesecurities (trading securities) at 10% until November 1. OnNovember 1, Wildhorse made a final $96,000 payment to Minsk. Otherthan the note to Netherlands, Wildhorse’s only outstandingliability at December 31, 2017, is a $28,600, 8%, 6-year notepayable, dated January 1, 2014, on which interest is payable eachDecember 31. Calculate the interest revenue, weighted-averageaccumulated expenditures, avoidable interest, and total interestcost to be capitalized during 2017. Interest revenue $Weighted-average accumulated expenditures $ Avoidable interest $Interest capitalized $ Prepare the journal entries needed on thebooks of Wildhorse Company at each of the following dates. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts.) (1) July 31,2017. (2) November 1, 2017. (3) December 31, 2017. Date AccountTitles and Explanation Debit Credit (To record the note.) (Torecord the payment to Minsk.) (To record the proceeds from theinvestment.) (To record the payment to Minsk.) 12/31 Click if youwould like to Show Work for this question: Open Show Work

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Answer It was given in the question that On July 31 Wildhorse issued a 328800 3year 12 note payable at Netherlands National Bank on which interest is payable each July 31 232800 of the proceeds of the note was paid to Minsk on July 31And remaining invested in shortterm marketable securities trading    See Answer
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