-/6 Question 2 of 10 View Policies Current Attempt in Progress On May 1, 2020, Christina Fashions borrowed $91,000 at a bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $22,750 and accrued interest at 6% due annually on April 30. The loan agreement requires the company to maintain a minimum current ratio of 2.0. The December 31, 2020, year-end statement of financial position, immediately prior to the reclassification of long-term debt follows Current assets $132.600 Current liabilities $51.000 Non-current assets 153.400 Loan payable 91.000 Common shares 72,000 Retained earnings 72.000 Total liabilities and Total assets $286,000 shareholders' equity $286,000 (a) Does Christina Fashions comply with the bank's current ratio requirement prior to recording the accrued interest and reclassification of the current portion of the long-term loan? (Round answer to 1 decimal place, es, 1.2.) Current ratio Christina Fashions the bank's minimum current ratio. Question 2 of 10 - 76 (b) Prepare journal entries to record the interest payable on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account tities and enter for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (c) Prepare the journal entries to reclassify the portion of the long-term loan as current. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Question 2 of 10 eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer (d) Does Christina Fashions breach the bank's current ratio requirement after preparing the journal entries above? (Round answer to 2 decimal places, eg. 1.25.) Current ratio Christina Fashions the bank's minimum current ratio. e Textbook and Media List of Accounts pts: 0 of 3 used Submit Anwwer Save for Later