The following selected transactions relate to liabilities of United Insulation Corporation Uniteds fiscal year ends on December 31 2016 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 $25 0 million at the banks prime rate Feb 1 Arranged a three month bank loan of $2 0 million with Parish Bank under the line of credit agreement Interest at the prime rate of 13 was payable at maturity May 1 Paid the 13 note at maturity Dec 1 Supported by the credit line, issued $17 6 million of commercial paper on a nine month note Interest was discounted at issuance at a 12 discount rate 31 Recorded any necessary adjusting entry(s) 2017 Sept 1 Paid the commercial paper at maturity Required Prepare the appropriate journal entries through the maturity of each liability 2016 and 2017 (If no entry is required for a transaction event, select No journal entry required in the first account field Do not round intermediate calculations Enter your answers in whole dollars )

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Posted on Sep 14, 2024

The following selected transactions relate to liabilities of United Insulation Corporation. Uniteds fiscal year ends on December 31. 2016 Jan.13 Negotiated a revolving credit agreement

The following selected transactions relate to liabilities of United Insulation Corporation. Uniteds fiscal year ends on December 31.

2016
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 $25.0 million at the banks prime rate.
Feb.1	Arranged a three-month bank loan of $2.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 13% was payable at maturity.
May 1	Paid the 13% note at maturity.
Dec.1	Supported by the credit line, issued $17.6 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 12% discount rate.
31	Recorded any necessary adjusting entry(s).
2017
Sept.1	Paid the commercial paper at maturity.

Required:

Prepare the appropriate journal entries through the maturity of each liability 2016 and 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.)