The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31.2021Jan. 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. Theamount available under the line of credit is $24.0 million at the bank's prime rate.1 Arranged a three-month bank loan of $7.6 million with Parish Bank under the line of credit agreement. Interestat the prime rate of 13% was payable at maturity.1 Paid the 13% note at maturity.1 Supported by the credit line, issued $10.6 million of commercial paper on a nine-month note. Interest wasFeb.МayDec.discounted at issuance at a 12% discount rate.31 Recorded any necessary adjusting entry(s).2022Sept. 1 Paid the commercial paper at maturity.Required:Prepare the appropriate journal entries through the maturity of each liability. (If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)View transaction listJournal entry worksheet12 3456 7>Record a revolving credit agreement negotiated with Parish Bank that can berenewed annually upon bank approval. The amount available under the line ofcredit is $24.0 million at the bank's prime rate.

Journal entries refer to the first step of accounting where economic events of the enterprise are…

Prepare the appropriate journal entries through the maturity of each liability. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)

Prepare the appropriate journal entries through the maturity of each liability. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31.
2021
Jan. 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The
amount available under the line of credit is $24.0 million at the bank's prime rate.
1 Arranged a three-month bank loan of $7.6 million with Parish Bank under the line of credit agreement. Interest
at the prime rate of 13% was payable at maturity.
1 Paid the 13% note at maturity.
1 Supported by the credit line, issued $10.6 million of commercial paper on a nine-month note. Interest was
Feb.
Мay
Dec.
discounted at issuance at a 12% discount rate.
31 Recorded any necessary adjusting entry(s).
2022
Sept. 1 Paid the commercial paper at maturity.
Required:
Prepare the appropriate journal entries through the maturity of each liability. (If no entry is required for a transaction/event, select
"No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)
View transaction list
Journal entry worksheet
1
2 3
4
5
6 7
>
Record a revolving credit agreement negotiated with Parish Bank that can be
renewed annually upon bank approval. The amount available under the line of
credit is $24.0 million at the bank's prime rate.

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