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

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

FINANCIAL ACCOUNTING
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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Exercise 13-3 (Static) Short-term notes [LO13-2] 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 $20 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. 1 Paid the 10% note at maturity. May Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% 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. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in whole dollars.) View transaction list Journal entry worksheet < 1 2 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 $20 million at the bank's prime rate. 3 4 5 6 7 Note: Enter debits before credits. Date Jan 13, 2021 Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:Exercise 13-3 (Static) Short-term notes [LO13-2] 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 $20 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. 1 Paid the 10% note at maturity. May Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% 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. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in whole dollars.) View transaction list Journal entry worksheet < 1 2 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 $20 million at the bank's prime rate. 3 4 5 6 7 Note: Enter debits before credits. Date Jan 13, 2021 Record entry General Journal Clear entry Debit Credit View general journal
Exercise 13-3 (Static) Short-term notes [LO13-2] 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 $20 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 18% was payable at maturity. May 1 Paid the 10% note at maturity. Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% 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. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in whole dollars.) View transaction list Record a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. 3 Record the payment of the 10% note at maturity. 2 4 Record the issuance of $10 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 9% discount rate. 5 Record necessary adjusting entry to accrue interest on December 31. 6 Record interest on commercial paper in 2022. Note : = journal entry has been entered Record entry Clear entry can be e line of Credit View general journal
Transcribed Image Text:Exercise 13-3 (Static) Short-term notes [LO13-2] 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 $20 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 18% was payable at maturity. May 1 Paid the 10% note at maturity. Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% 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. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in whole dollars.) View transaction list Record a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. 3 Record the payment of the 10% note at maturity. 2 4 Record the issuance of $10 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 9% discount rate. 5 Record necessary adjusting entry to accrue interest on December 31. 6 Record interest on commercial paper in 2022. Note : = journal entry has been entered Record entry Clear entry can be e line of Credit View general journal
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