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

Required:

Prepare the appropriate journal entries through the maturity of each liability.

2013

• Jan. 13Negotiated a revolving credit agreement with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $20 million at the banks prime rate.
• Feb.1Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity.
• May 1Paid the 10% note at maturity.
• Dec. 1Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate.
• 31Recorded any necessary adjusting entry(s).

2014

• Sept. 1Paid the commercial paper at maturity.