AP9-2A (Reclassification of current portion of long-term debt and impact on current ratio) On May 1,2020, Christina Fashions borrowed $100,000 at a bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $25,000 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 $125,000 Current liabilities S 50,000 100,000 75,000 75,000 $300,000 Non-current assets 175,000 Loan payable Common shares Retained earnings Total liabilities and shareholders' equity Total assets S300,000 Required 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? b. Prepare journal entries to record the interest payable on December 31, 2020 c. Prepare the journal entries to reclassify the portion of the long-term loan as current d. Docs Christina Fashions breach the bank's current ratio requirement after preparing the journal entries above