Exercise 13-3 (Algo) Short-term notes (LO13-2] The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31 2021 Jan. 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 $22.0 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $3.0 million with Parish Bank under the line of credit agreement. Interest at the prine rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity Dec. 1 Supported by the credit line, issued $15.0 million of commercial paper on a nine-nonth note. Interest was discounted at issuance at a 9% discount rate. 31 Recorded any necessary adjusting entry(s) 2022 Sept. 1 Paid the comercial paper at maturity Required: Prepare the appropriate foumal entries through the maturity of each liability. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate coleulations. Enter your answers in whole dollars.) View transaction list View journal entry worksheet No 1 Date Jan 13, 2021 Debit General Journal No journal entry required Credit 2 Feb 01, 2021 Cash Notes payable 3,000,000 3,000,000 View transaction list View journal entry worksheet No General Journal Debit Credit Date Jan 13, 2021 1 No journal entry required 2 Feb 01, 2021 Cash Notes payable 3,000,000 3,000,000 3 May 01, 2021 Interest expense Notes payable Cash 75,000 3,000,000 3,075,000 4 Dec 01, 2021 Cash Discount on notes payable Notes payable 5 Dec 31, 2021 Interest expenso Discount on notes payable 6 Sep 01, 2022 Interest expense Discount on notes payable 7 Sep 01, 2022 Notes payable Cash HILCOTEUICILE L View transaction list View journal entry worksheet . X 1 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 $22.0 million at the bank's prime rate. 2 Record a three-month bank loan of $3.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. 3 Record the payment of the 10% note at maturity. 4 Record the issuance of $15.0 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 9% discount rate. Note : = journal entry has been entered 6 Sep 01, 2022 Interest expense Discount on notes payable 7 Sep 01. 2022 Notes payable View transaction list View journal entry worksheet x at the prime rate of 10% was payable at maturity. 3 Record the payment of the 10% note at maturity. 4 Record the issuance of $15.0 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 9% discount rate. 5 Record necessary adjusting entry to accrue interest on December 31. 6 Record interest on commercial paper in 2022. Record the repayment of commercial paper at maturity. Note: journal entry has been entered Sep 01, 2022 Interest expense 6
