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The following selected transactions relate to liabilities of United Insulation Corporation. Uniteds fiscal year ends on December 31. 2021 Jan. 13 Negotiated a revolving credit

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

2021

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 $30.5 million at the banks prime rate.
Feb. 1 Arranged a three-month bank loan of $7.8 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 12% was payable at maturity.
May 1 Paid the 12% note at maturity.
Dec. 1 Supported by the credit line, issued $18.0 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 11% discount rate.
31 Recorded any necessary adjusting entry(s).

2022

Sept. 1 Paid the commercial paper at maturity.

Required:

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

  • Record a revolving credit agreement negotiated with Parish Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $30.5 million at the banks prime rate.

  • 2

    Record a three-month bank loan of $7.8 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 12% was payable at maturity.

  • 3

    Record the payment of the 12% note at maturity.

  • 4

    Record the issuance of $18.0 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 11% discount rate.

  • 5

    Record necessary adjusting entry to accrue interest on December 31.

  • 6

    Record interest on commercial paper in 2022.

  • 7

    Record the repayment of commercial paper at maturity.

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