Return to question The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2021 Jan. 13 Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $20 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. Dec. 1 Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. 31 Recorded any necessary adjusting entry(s). 2022 Sept. 1 Paid the commercial paper at maturity. Required: Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) Answer is not complete. No Date Debit Credit General Journal No journal entry required 1 Jan 13, 2021 > 2 Feb 01, 2021 4,500,000 X Cash Notes payable 4,500,000 X Required: Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 2 3 4 5 6 7 > Record the payment of the 10% note at maturity. Note: Enter debits before credits. Date General Journal Debit Credit May 01, 2021 Notes payable Interest expense Cash Required: Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record the issuance of $10 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 9% discount rate. Note: Enter debits before credits. Date General Journal Debit Credit Dec 01, 2021 Cash Discount on notes payable Required: Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record necessary adjusting entry to accrue interest on December 31. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2021 Interest expense Discount on notes payable Required: Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet Record interest on commercial paper in 2022. Note: Enter debits before credits. Date General Journal Debit Credit Sep 01, 2022 Interest expense Discount on notes payable Required: Prepare the appropriate journal entries through the maturity of each liability. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet
