On May 1, 2020, Christina Fashions borrowed $103,000 ata bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $25,750 and accrued interest at 6% due annually on April 30. The loan agreement requires thecompany to maintain a minimum current ratio of 2.0. The December 31, 2020, year-end statement of financial position, immediately prior to the reclassification of long-term debt, follows: Current assets $132,000 $55,000 Non-current assets 163,000 Current liabilities Loan payable Common shares Retained earnings Total liabilities and shareholders' equity 103,000 67,000 70,000 Total assets $295,000 $295,000 Does Christina Fashionscomply with the bank's current ratio requirement prior to recording the accrued interest and reclassification of thecurrent portion of the long-term loan? [Round answer to 1 decimal place, e.g. 1.2.) Current ratio Christina Fashions the bank's minimum current ratio. eTextbook and Media List of Accounts Preparejournal entries to record the interest payableon December 31, 2020. (Credit account titles are automatically inderted when the amount is entered. Do not indert marmally. If no entry is required, select "No entry"for the account titles and enter Ofor the amounts. Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Prepare the journal entries to reclassify the portion of the long-term loan ascurrent. (Credit account titles are automatically inderted when the amount is entered. Do not indert manually. If no entry is required, select "No entry"for the account titles onderter Ofor the amounts.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Does Christina Fashions breach the bank'scurrent ratio requirement after preparing the journal entries above? {Round answer to 2 decimal places, e.g. 1.25.) Current ratio Christina Fashions the bank's minimum current ratio. eTextbook and Media List of Accounts