On July 31, 2020, Oriole 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 Oriole issued a $320,400, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $228,400 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, Oriole made a final $92,000 payment to Minsk. Other than the note to Netherlands, Orioles only outstanding liability at December 31, 2020, is a $32,900, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31.

1. 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		$

2. Prepare journal entries needed on the books of Oriole Company at each of the following dates.

a. July 31, 2020

b. November 1, 2020

c. December 31, 2020