On January 1, 2019,Jameel Company engaged Galadari Engineering Company to construct

a special purpose machinery.Construction began immediately and completed on October 1 ,2019.

To help finance construction , on January 1, 2019 Otaibi issued a $500,000, 3 year 12% note payable

at Emirates Bank on which interest is payable every December 31. $375,000 of the proceeds of the

note was paid to Galadarion January 1, 2019.The reminder of the proceeds was temporarily

invested in short- term marketable securities(trading securities)at 10% until October 1.

On October1,Jameelmade a final$125,000payment to Galadari. Other than the note to Emirates

Bank, Jameel's only outstandingliability on December 31, 2019is a 40,000 ,8%6 year note-

-payable,datedJanuary 1, 2016 on which interest is paybleeach December 31.

Required:

(a)Calculate the interest revenue, weighted -average accumulated expenditures, avoidable interestand total interest cost to be capitalized during 2019. (round all computations to thenearest dollar).

(b)Prepare journal entrres needed on the books of Jameel Company at each of the following dates.

1.January 1, 2019

2.October 1, 2019

3.December 31, 2019