The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 2021 Jan. 13 Negotiated a revolving
The following selected transactions relate to liabilities of United Insulation Corporation. United's 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 $25.0 million at the bank's prime rate. 1 Arranged a three-month bank loan of $7.4 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 12% was payable at maturity. 1. Paid the 12% note at maturity. 1 Supported by the credit line, issued $12.0 million of commercial paper on a nine-month note. Interest was Feb. May Dec. 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.) Journal entry worksheet 1 2 3 4 5 6 7 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 $25.0 million at the bank's prime rate. Note: Enter debits before credits. Date General Journal Debit Credit Jan 13, 2021 2 4 5 6 7 Record a three-month bank loan of $7.4 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 12% was payable at maturity. Note: Enter debits before credits. Date General Journal Debit Credit Feb 01, 2021 3. 2 3 4 5 6 7 Record the payment of the 12% note at maturity. Note: Enter debits before credits. Date General Journal Debit Credit May 01, 2021 < 1 2 3 6 7 5 Record the issuance of $12.0 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 11% discount rate. Note: Enter debits before credits. Date General Journal Debit Credit Dec 01, 2021 4, 1 2 3 4 6 7 > Record necessary adjusting entry to accrue interest on December 31. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2021 1 2 3 4 > 6 7 Record interest on commercial paper in 2022. Note: Enter debits before credits. Date General Journal Debit Credit Sep 01, 2022 1 2 3 4 5 6 7 Record the repayment of commercial paper at maturity. Note: Enter debits before credits. Date General Journal Debit Credit Sep 01, 2022
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