On May 1, 2020, Christina Fashions borrowed $96,000 at a bank by signing a four-year, 6% loan. The terms of the loan require equal principal payments of $24,000 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 Non current assets Total assets $120,000 178.000 $298.000 Current liabilities Loan payable Common shares Retained earnings Total liabilities and shareholders' equity $50,000 96,000 72.000 80,000 $298,000 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 does not meet meets eTextbook and Media List of Accounts the bank's minimum current ratio. Account Titles and Explanation eTextbook and Media List of Accounts Debit Account Titles and Explanation 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.) Credit Debit Credit Does Christina Fashions breach the bank's current 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