Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 31, 2011, Robinson Company engaged Parrish Tooling Company to construct a special- purpose piece of factory machinery. Construction was begun on August 1,

image text in transcribed
image text in transcribed
On July 31, 2011, Robinson Company engaged Parrish Tooling Company to construct a special- purpose piece of factory machinery. Construction was begun on August 1, 2011 and was completed on November 1, 2011. To help finance construction, on July 31, Robinson issued a $450,000, 3-year, 10% note payable at Randazzo National Bank, on which interest is payable each July 31. Robinson paid $300,000 of the proceeds of the note to Parrish on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities at 8% until November 1. On November 1, Robinson made a final $150,000 payment to Parrish. Other than the note to Randazzo, Robinson's only outstanding liability at December 31,2011, is a $45,000, 6%, 6-year note payable, dated January 1,2008, on which interest is payable each December 31. a) Calculate (rounding your computations to the nearest dollar): 1. Interest revenue. 2. Weighted-average accumulated expenditures. 3. Avoidable interest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Brinks Modern Internal Auditing A Common Body Of Knowledge

Authors: Robert R. Moeller

8th Edition

9781119016984

More Books

Students also viewed these Accounting questions