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How do I find the interest expense, notes payable, and cash amount of this problem? January 13 Negotiate a revolving credit agreement with First Bank
How do I find the interest expense, notes payable, and cash amount of this problem?
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 $3.4 million with First Bank under the line of credit agreement. Interest at the prime rate of 8% is payable at maturity. May 1 Pay the 8% 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).) View transaction list Journal entry worksheet Record the payment of the note at maturity. Note: Enter debits before credits. Debit Credit Date May 01 General Journal Interest Expense Notes Payable CashStep by Step Solution
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