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On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed
On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2014. 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.
Un July 31, 2025, Amsterdam Company engaged Minsk Ioolng Company to construct a special-purpose pece of tactory machnery. Construction began immediately and was completed on November 1, 2025. 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 31,2025 , is a $30,000,8%, 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 $ Avoidable interest $ Interest capitalized $ Prepare the journal entries needed on the books of Amsterdam Company at each of the folloving dates. (Record joumal entries in the order presented in the problem. 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 O for the amounts. List all debit entries before credit entries.) 1. July 31,2025 2. November 1,2025 . 3. December 31,2025
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