Question 5 of 12 -/10 IN View Policies Current Attempt in Progress On June 30, 2020, Kovacs Company borrowed $435,000 at a bank by signing a five-year, 10% loan. The terms of the loan require equal semi-annual principal payments plus interest beginning December 31, 2020. The loan agreement requires the company to maintain a current ratio of 25. The December 31, 2020 year-end statement of financial position immediately prior to the bank loan repayment and the reclassification of long-term debt, follows: Qurrent assets $202,100 Current liabilities $47.000 Non-current assets 528.900 Loan payable 435.000 Common shares 155.000 Retained earnings 94.000 Total assets $731,000 Total liabilities and shareholders' equity $731.000 Does Kovacs Company comply with the current ratio requirement prior to recording the December 31 loan payment? (Round answer to 1 decimal place, eg. 12) Current ratio Kovacs Company the bank's minimum current ratio. eTextbook and Media List of Accounts Prepere journal entries to record the principal and interest payment on December 31, 2020. (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.) Account Titles and Explanation Debit Credit 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 0 for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Does Kovacs Company comply with the current ratio requirement after preparing the journal entries above? (Round answer to 2 decimal places, eg. 1.25.) Current ratio Kovacs Company the bank's minimum current ratio