On June 30, 2020, Kovacs Company borrowed $365,000 at a bank by signing a five-year 10% loan, The terms of the loan require equal semi-annual principal payments plus interest beginning December 31, 2020. The loan agreement requires the company to maintaina current ratio of 2.5, The December 31, 2020, year-end statement of financial position, immediately prior to the bank loan repayment and the reclassification of long-term debt, follows: $206,700 $53,000 Current assets Non-current assets Current liabilities Loan payable 450.300 365.000 Common shares 148,000 91.000 Retained earnings Total liabilities and shareholders equity Total assets $657.000 $657,000 Does Kovacs Company comply with the current ratio requirement prior to recording the December 31 loan payment (Round answer to 1 decimal place, c. 1.2) Current ratio Kovacs Company the bank's minimum current ratio. eTextbook and Media List of Accounts Prepare journal entries to record the principal and interest payment on December 31, 2020. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Does Kovacs Company comply with the current ratio requirement after preparing the journal entries above? (Round answer to 2 decimal places, es 1.25.) Current ratio Kovacs Company the bank's minimum current ratio