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Sarasota Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. 2. Truck #1 has a list price of $ 27,750 and is acquired for a cash payment of $ 25,715. Truck #2 has a list price of $ 29,600 and is acquired for a down payment of $3,700 cash and a zero-interest-bearing note with a face amount of $ 25,900. The note is due April 1, 2021. Sarasota would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. Truck #3 has a list price of $ 29,600. It is acquired in exchange for a computer system that Sarasota carries in inventory. The computer system cost $ 22,200 and is normally sold by Sarasota for $ 28,120. Sarasota uses a perpetual inventory system. Truck #4 has a list price of $ 25,900. It is acquired in exchange for 1,060 shares of common stock in Sarasota Corporation. The stock has a par value per share of $ 10 and a market price of $ 13 per share. 3. 4. Prepare the appropriate journal entries for the above transactions for Sarasota Corporation (Round present value factors to 5 decimal places, eg. 0.52587 and final answers to 2 decimal places, e.g. 52.75. Credit account 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 for the amounts.) No. Account Titles and Explanation Debit Credit 1. Trucks 25715 Cash 25715 2. Trucks 27461 Discount on Notes Payable 2139 Good Cash 3700 Notes Payable 25900 SweetFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020. Sweet expected to complete the building by December 31, 2020. Sweet has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30,2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 $1,200,000 900,000 600.000 (a) ) Assume that Sweet completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3,120,000, and the weighted-average amount of accumulated expenditures was $ 2,160.000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to decimal places, eg. 5,275.) Avoidable Interest $ Save for Later Attempts: 0 of 9 used Submit Answer On July 31, 2020, Crane 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 Crane issued a $ 301,200. 3-year, 12% note payable at Netherlands National Bank on which interest is payable each July 31. $ 195,200 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, Crane made a final $ 106,000 payment to Minsk. Other than the note to Netherlands, Crane's only outstanding liability at December 31, 2020, is a $ 30,300, 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 revenue $ Weighted-average accumulated expenditures $ Avoidable interest $ Interest capitalized $

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