Prepare the relevant journal entries for the transactions listed below. (Attach all computations for each journal entry)

2015

1. April 1: Received a short-term line of credit from the bank in the amount of $20,000,000 at the rate of 12%. The company will pay no commitment fees for this arrangement.

2. July 5: Received a $75,000 refundable deposit from a major customer for mailing containers used to transport the companys equipment.

3. October 17: Received most of the mailing containers covered by the refundable deposit and a letter stating that the customer will retain containers represented by $12,000 of the deposit and therefore does not request a refund for that amount. The cost of the forfeited containers was $4,500.

4. August 1: Borrowed $7 million in cash from the bank under the line of credit arranged in March and issued a ten-month promissory note. Interest at the prime rate of 12% was payable at maturity.

5. December 31: Recorded appropriate adjusting entries for the liabilities described above. Fiscal year ends in December 31.