The following selected transactions relate to liabilities of Colorado Adventures. Colorado$$s fiscal year ends on December $31.$

January $13$ Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $$10$ million at the bank's prime rate.

February $1$ Arrange a three$-$month bank loan of $$3\mathrm{.}5$ million with First Bank under the line of credit agreement. Interest at the prime rate of $7\%$ is payable at maturity.

May $1$ Pay the $7\%$ note at maturity.