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Please help with the bank loan to be refinanced on a long-term basis. ( it is not 10,000,000) Thanks, Problem 13-2 Various transactions involving liabilities
Please help with the bank loan to be refinanced on a long-term basis. ( it is not 10,000,000)
Thanks,
Problem 13-2 Various transactions involving liabilities [L013-2, 13-3, 13-4] Answer is not complete. Complete this question by entering your answers in the tabs below. llowing selected transactions relate to liabilities of the co for September 2018 through March 2019. Camden's fiscal year ends on December 31. Its financial statements are issued in April 2018 a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short term line of credit of up to Required 1 Required 2 $15,000,000 at the bank's prime rate {10.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issued a five month promissory Prepare the current and long-term liability sections of the December 21, 2018, ba date were $252,000. (Enter your answers in whole dollars.) note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay Balance Sheet (partial) At December 31, 2018 c Received $2,600 of refundable deposits in December for reusable containers used to transport and store chemical-based products. d For the September-December period, sales on account totaled $4.100.000 The state sales tax rate is 3% and the local sales tax Current liabilities rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.) e. Recorded the adjusting entry for accrued interest 252.000 2,000,000 2,600 246.000 s payable Current portion of bank loan Liability-refundable deposits Sales taxes payable Accrued intarest payable 2019 t. In February, issued S10 milion of 10-year bonds at face value and paid the bank loan on the March 1 due date. g. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to 300,000 O be returned during the next six months. 2,800,600 Long-term liabilities Required: 1. Prepare the appropriate journal entries for 2018 and 2019 transactions. 2. Prepare the current and long-term liability sections of the December 31, 2018, balance sheet. Trade accounts payable on that date were $252,000. Bank loan to be r 10.000.000 basis Bank loan to be refinanced on a long termStep by Step Solution
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