Prepare the journal entries needed on the books of Ivanhoe Company at each of the following dates. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)(1)July 31, 2020.(2)November 1, 2020.(3)December 31, 2020.DateAccount Titles and ExplanationDebitCredit(To record the note.)(To record the payment to Minsk.)(To record the payment to Minsk.) On July 31, 2020, Ivanhoe 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 Ivanhoe issued a$303,600, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $208,600 of theproceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketablesecurities (trading securities) at 10% until November 1. On November 1, Ivanhoe made a final $95,000 payment to Minsk. Other thanthe note to Netherlands, Ivanhoe's only outstanding liability at December 31, 2020, is a $28,200, 8%, 6-year note payable, datedJanuary 1, 2017, on which interest is payable each December 31.(a)Your answer is correct.Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to becapitalized during 2020.242375Interest revenueWeighted-average accumulated expenditures2452150Avoidable interest2$6258Interest capitalized2$6258

The journal entries for the above questions are as follows:

Prepare the journal entries needed on the books of Ivanhoe Company at each of the following dat automatically indented when amount is entered. Do not indent manually. If no entry is required, select "N enter O for the amounts.) (1) July 31, 2020. (2) November 1, 2020. (3) December 31, 2020. Date Account Titles and Explanation Debit

Prepare the journal entries needed on the books of Ivanhoe Company at each of the following dat automatically indented when amount is entered. Do not indent manually. If no entry is required, select "N enter O for the amounts.) (1) July 31, 2020. (2) November 1, 2020. (3) December 31, 2020. Date Account Titles and Explanation Debit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 10RE

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