Exercise 8-6A Record a line of credit (LO8-2) The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountain's fiscal year ends on December 31. January 13 Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the banks prime rate. February 1 Arrange a three-month bank loan of $5 million with First Bank under the line of credit agreement. Interest at the prime rate of 7% is payable at maturity. May 1 Pay the 7% note at maturity. Required: Record the appropriate entries, if any, on January 13, February 1, and May 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).) Answer is complete but not entirely correct. No 1 Date January 13 General Journal No Journal Entry Required 2 February 01 Cash Notes Payable 3 May 01 Interest Expense Notes Payable Cash Debit Credit 4,900,000 4,900,000 85,750 x 4,900,000 4,985,750