On June 30, 2020, Kovacs Company borrowed $440,000 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: $202,500 Current liabilities $45,000 Current assets Non-current assets 513,500 Loan payable 440,000 Common shares 135,000 96,000 Retained earnings Total liabilities and shareholders' equity Total assets $716,000 $716,000 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 enter o for the amounts.) Debit Credit Account Titles and Explanation Long-Term Loan Payable Current Portion of Long Term Debt e Textbook and Media List of Accounts Save for Later Attempts: unlimited Submit