Question
The following selected transactions relate to liabilities of United Insulation Corporation. Uniteds fiscal year ends on December 31. 2013 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.
2013 | |
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 $29.0 million at the banks prime rate. |
Feb.1 | Arranged a three-month bank loan of $6.0 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 $16.0 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). |
2014 | |
Sept.1 | Paid the commercial paper at maturity. |
Required: |
Calculate the total interest payable through maturity also calculate the interest payable for the year ended December 31, 2013 and December 31, 2014. |
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