On July 31, 2020, Tamarisk Company engaged Minsk Tooling Company to construct a special-purpose piece of...

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On July 31, 2020, Tamarisk 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 Tamarisk issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $210,000 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, Tamarisk made a final $90,000 payment to Minsk. Other than the note to Netherlands, Tamarisk's only outstanding liability at December 31, 2020, is a $31,100, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31. On July 31, 2020, Tamarisk 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 Tamarisk issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $210,000 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, Tamarisk made a final $90,000 payment to Minsk. Other than the note to Netherlands, Tamarisk's only outstanding liability at December 31, 2020, is a $31,100, 8%, 6-year note payable, dated January 1, 2017, on which interest is payable each December 31.