Prepare journal entries to record the interest payable on December 31, 2020.

On May 1, 2020, Christina Fashions borrowed $107,000 at a bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $26,750 and accrued interest at 6% due annually on April 30. The loan agreement requires the company 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 $117,000 Current liabilities $45,000 Non-current assets 179,000 Loan payable 107,000 Common shares 69,000 Retained earnings 75,000 Total liabilities and Total assets $296,000 shareholders' equity $296,000 Does Christina Fashions comply with the bank's current ratio requirement prior to recording the accrued interest and reclassification of the current 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.