The following selected transactions relate to liabilities of United Insulation Corporation. United s fiscal year ends on
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Question:
The following selected transactions relate to liabilities of United Insulation Corporation. Uniteds fiscal year ends on December
January 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 $ million at the banks prime rate.
February Arranged a threemonth bank loan of $ million with Parish Bank under the line of credit agreement. Interest at the prime rate of was payable at maturity.
May Paid the note at maturity.
December Supported by the credit line, issued $ million of commercial paper on a ninemonth note. Interest was discounted at issuance at a discount rate.
December Recorded any necessary adjusting entrys
September Paid the commercial paper at maturity.
Required:
Prepare the appropriate journal entries through the maturity of each liability.
Note: Do not round intermediate calculations. If no entry is required for a transactionevent select No journal entry required" in the first account field. Enter your answers in whole dollars.
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