The following selected transactions relate to liabilities of Pacific Coast Adventures. Pacific Coast'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 $3.6 million with First Bank under the line of credit agreement. Interest at the prime rate of 6% is payable at maturity. Pay the 6% 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).)
The following selected transactions relate to liabilities of Pacific Coast Adventures. Pacific Coast'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 $3.6 million with First Bank under the line of credit agreement. Interest at the prime rate of 6% is payable at maturity. Pay the 6% 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).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following selected transactions relate to liabilities of Pacific Coast Adventures. Pacific Coast'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 $3.6 million with First Bank under the line of credit
agreement. Interest at the prime rate of 6% is payable at maturity.
Pay the 6% 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
Journal entry worksheet
>
1
2
3
Arrange a three-month bank loan of $3.6 million with First Bank under the line
of credit agreement. Interest at the prime rate of 6% is payable at maturity.
Note: Enter debits before credits.
Date
February 01
General Journal
Debit
Credit
>
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