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 $25.0 million at the bank's prime rate. February 1 Arranged a three-month bank loan of $4.5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 6% was payable at maturity. Paid the 6% note at maturity. May 1 December 1 Supported by the credit line, issued $15.3 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 5% discount rate. December 31 Recorded any necessary adjusting entry(s).. 2025 September 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal Intries 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 fleld. Enter your answers in whole dollars. View transaction list
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 $25.0 million at the bank's prime rate. February 1 Arranged a three-month bank loan of $4.5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 6% was payable at maturity. Paid the 6% note at maturity. May 1 December 1 Supported by the credit line, issued $15.3 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 5% discount rate. December 31 Recorded any necessary adjusting entry(s).. 2025 September 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal Intries 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 fleld. Enter your answers in whole dollars. View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rahul
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 $25.0 million at the bank's prime rate.
February 1
Arranged a three-month bank loan of $4.5 million with Parish Bank under the line of credit agreement. Interest at the
prime rate of 6% was payable at maturity.
Paid the 6% note at maturity.
May 1
December 1
Supported by the credit line, issued $15.3 million of commercial paper on a nine-month note. Interest was discounted at
issuance at a 5% discount rate.
December 31
Recorded any necessary adjusting entry(s)..
2025
September 1 Paid the commercial paper at maturity.
Required:
Prepare the appropriate journal Intries 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 fleld. Enter your answers in whole dollars.
View transaction list
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