On June 30, 2020. Kovacs Company borrowed $390.000 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 maintain a 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: Current assets $200.900 Current liabilities $49.000 Non-current assets 494,100 Loan payable 390,000 150,000 106,000 Common shares Retained earnings Total liabilities and shareholders' equity Total assets $695,000 $695,000 Does Kovacs Company comply with the current ratio requirement prior to recording the December 31 loan payment? (Round answer to 1 decimal place, e.g. 1.2.) Current ratio Kovacs Company meets the bank's minimum current ratio. 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 Ofor the amounts.) Account Titles and Explanation Debit Credit Prepare the journal entries to reclassify the portion of the long-term loan as current. (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 entero for the amounts.) Account Titles and Explanation Debit Credit Does Kovacs Company comply with the current ratio requirement after preparing the journal entries above? (Round answer to 2 decimal places, eg. 1.25.) Current ratio Kovacs Company the bank's minimum current ratio