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On May $1,2024,$ Linda Fashions borrowed $$84,000$ at a bank by signing a four$-$year, $6\%$ loan. The terms of the loan require equal

principal payments of $$21,000$ and accrued interest at $6\%$ due annually on April $30.$ The loan agreement requires the company to

maintain a minimum current ratio of $2\mathrm{.}0.$ The December $31,2024,$ year$-$end statement of financial position, immediately prior to the

reclassification of long$-$term debt, follows:

$($a$)$

Your answer is correct.

Does Linda Fashions comply with the bank's current ratio requirement prior to recording the accrued interest and reclassification

of the current portion of the long$-$term loan? $($Round answer to $2$ decimal places, e$.$g$.1\mathrm{.}20.)$

Current ratio

Linda Fashions

the bank's minimum current ratio.

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List of Accounts

$($b$)$

Prepare journal entries to record the interest payable on December $31,2024.($Credit account titles are automatically indented when

the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles and enter $0$ for the amounts.

List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

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$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.

$($d$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.