Exercise 8-6B Record a line of credit (LO8-2)

The following selected transactions relate to liabilities of Company A. Company As fiscal year ends on December 31.

January		13		Negotiate a revolving credit agreement with Company B 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 $4.2 million with Company B under the line of credit agreement. Interest at the prime rate of 6% is payable at maturity.
May		1		Pay the 6% 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).)