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The following selected transactions relate to liabilities of Colorado Adventures. Colorado's fiscal year ends on December 31. January 13 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate. February 1 Arrange a three-month bank loan of $3.2 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. Pay the 7% note at maturity. May 1 Required: Record the appropriate entries, if any, on January 13, February 1, and May 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 million should be entered as 5,000,000).) View transaction list

The following selected transactions relate to liabilities of Colorado Adventures. Colorado's fiscal year ends on December 31. January 13 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate. February 1 Arrange a three-month bank loan of $3.2 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. Pay the 7% note at maturity. May 1 Required: Record the appropriate entries, if any, on January 13, February 1, and May 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 million should be entered as 5,000,000).) View transaction list

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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Please read and record journal entries statements provided carefully.

The following selected transactions relate to liabilities of Colorado Adventures. Colorado's fiscal year ends on December 31. January 13 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate. February 1 Arrange a three-month bank loan of $3.2 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. Pay the 7% note at maturity. May 1 Required: Record the appropriate entries, if any, on January 13, February 1, and May 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 million should be entered as 5,000,000).) View transaction list
Transcribed Image Text:The following selected transactions relate to liabilities of Colorado Adventures. Colorado's fiscal year ends on December 31. January 13 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate. February 1 Arrange a three-month bank loan of $3.2 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. Pay the 7% note at maturity. May 1 Required: Record the appropriate entries, if any, on January 13, February 1, and May 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 million should be entered as 5,000,000).) View transaction list
X: > 1 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at newed the bank's prime rate. credit is 2 Arrange a three-month bank loan of $3.2 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. Credit 3 Pay the 7% note at maturity. Note : = journal entry has been entered Record entrV Clear entry View general iournal
Transcribed Image Text:X: > 1 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at newed the bank's prime rate. credit is 2 Arrange a three-month bank loan of $3.2 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. Credit 3 Pay the 7% note at maturity. Note : = journal entry has been entered Record entrV Clear entry View general iournal
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