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The following selected transactions relate to liabilities of Company A . Company A ' s fiscal year ends on December 3 1 . January 1
The following selected transactions relate to liabilities of Company A Company As fiscal year ends on December
January Negotiate a revolving credit agreement with Company B that can be renewed annually upon bank approval. The amount
available under the line of credit is $ million at the bank's prime rate.
February Arrange a threemonth bank loan of $ million with Company B under the line of credit agreement. Interest at the prime
rate of is payable at maturity.
May
Pay the note at maturity.
Required:
Record the appropriate entries, if any, on January February and May If no entry is required for a particular transactionevent
select No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions ie million should be
entered as
Journal entry worksheet
Negotiate a revolving credit agreement with Company B that can be renewed
annually upon bank approval. The amount available under the line of credit is
$ million at the bank's prime rate.
Note: Enter debits before credits.
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