The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2024 January 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 $28.0 million at the bank's prime rate. February 1 Arranged a three-month bank loan of $8.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. December 1 Supported by the credit line, issued $14.0 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. December 31 Recorded any necessary adjusting entry(s). 2025 September 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability. Note: 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. 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 $28.0 million at the bank's prime rate. Note: Enter debits before credits. Date January 13, 2024 General Journal Debit Credit Record entry Clear entry View general journal >
The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2024 January 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 $28.0 million at the bank's prime rate. February 1 Arranged a three-month bank loan of $8.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. December 1 Supported by the credit line, issued $14.0 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. December 31 Recorded any necessary adjusting entry(s). 2025 September 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability. Note: 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. 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 $28.0 million at the bank's prime rate. Note: Enter debits before credits. Date January 13, 2024 General Journal Debit Credit Record entry Clear entry View general journal >
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 United Insulation Corporation. United's fiscal year ends on December 31.
2024
January 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 $28.0 million at the bank's prime rate.
February 1 Arranged a three-month bank loan of $8.0 million with Parish Bank under the line of credit agreement. Interest at the
prime rate of 10% was payable at maturity.
May 1 Paid the 10% note at maturity.
December 1 Supported by the credit line, issued $14.0 million of commercial paper on a nine-month note. Interest was discounted at
issuance at a 9% discount rate.
December 31 Recorded any necessary adjusting entry(s).
2025
September 1 Paid the commercial paper at maturity.
Required:
Prepare the appropriate journal entries through the maturity of each liability.
Note: 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.
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 $28.0 million at the bank's prime rate.
Note: Enter debits before credits.
Date
January 13, 2024
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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