he following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31.     January   26   Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's prime rate. March   1   Arranged a six-month bank loan of $380,000 with City Bank under the line of credit agreement. Interest at the prime rate of 9% is payable at maturity. September   1   Paid the 9% note at maturity.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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he following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31.  
 

January   26   Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's prime rate.
March   1   Arranged a six-month bank loan of $380,000 with City Bank under the line of credit agreement. Interest at the prime rate of 9% is payable at maturity.
September   1   Paid the 9% note at maturity.

 

Record the appropriate entries, if any, on January 26, March 1, and September 1. (Enter your answers in dollars, not in millions. Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

  • Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $4.70 million at the bank's prime rate. Record appropriate entry if necessary.
  •  
     
    Date General Journal Debit Credit
    January 26      
           
           
           
           
           
    • Arranged a six-month bank loan of $380,000 with City Bank under the line of credit agreement. Interest at the prime rate of 9% is payable at maturity. Record appropriate entry if necessary.
     
     
    Date General Journal Debit Credit
    March 01      
           
           
           
           
           
     
    • Record payment of the 9% note at maturity.
     
     
    Date General Journal Debit Credit
    September 01      
           
           
           
           
           
     
     
     
     
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