The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountains 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 banks prime rate.

February 1 Arrange a three-month bank loan of $3.0 million with First Bank under the line of credit agreement. Interest at the prime rate of 6% is payable at maturity.

May 1 Pay the 6% note at maturity.

Record the appropriate entries, if any, on January 13, February 1, and May 1.