On July 31, 2020, Amsterdam 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 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, Amsterdams only outstanding liability at December 31, 2020, is a $30,000, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31.

Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2020.

Interest revenue		$ 2,500
Weighted-average accumulated expenditures		$ 50,000
Avoidable interest		$ 6,000
Interest capitalized		$ ?

Prepare the journal entries needed on the books of Amsterdam Company at each of the following dates. (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 0 for the amounts.)

(1)		July 31, 2020.
(2)		November 1, 2020.
(3)		December 31, 2020.B

DATE	ACCOUNT TITLES AND EXPLANATION	DEBIT	CREDIT
7/31	?	?	?
	?	?	?
	(To record the note.)
	?	?	?
	?	?	?
	?	?	?
	(To record the payment to Minsk)
11/1	Machinery	100,000
	Cash		100,000
	(To record the payment to Minsk)
12/31	Machinery	6,000
	Interest Expense	11,400
	Cash		2,400
	Interest Payable		15,000