Question 5 of 12 - / 10 On June 30, 2020, Kovacs Company borrowed $375,000 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: Current assets $189.000 $45.000 Current liabilities Loan payable Non-current assets 492,000 375,000 Common shares 153,000 Retained earnings 108,000 Total assets $681.000 Total liabilities and shareholders' equity $681,000 Does Kovacs Company comply with the current ratio requirement prior to recording the December 31 loan payment? (Round answer to 1 decimal place, es 1.2.) Current ratio does not meet meets KAR thanks minimum current ratio Question 5 of 12 -/10 LIST OT ACCOUnts Prepare 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 for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Question 5 of 12 -110 "List of Accounts 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 entero for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Question 5 of 12 - / 10 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 the bank's minimum current ratio. Kovacs Company does not meet meets eTextbook and Media List of Accounts Arte