Question

The following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31. 26 Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $12.70 million at the bank's prime rate. 1 Arranged a six-month bank loan of $370,000 with City Bank under the line of credit agreement. Interest at the prime rate of 8% is payable at maturity. 1 Paid the 8% note at maturity January March September Record the appropriate entries, if any, on January 26, March 1, and September 1. (Enter your answers in dollars, not in millions. Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Negotiated a line of credit with City Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $12.70 million at the bank's prime rate. Record appropriate entrv if necessarv. Note: Enter debits before credits. Date General Journal Debit Credit January 26 Record entry View general journal Clear entry

Answer 1

		Debit	Credit
January 26	NO Journal entry required
March 1	Cash	370000
	Notes payable		370000
September 1	Interest expense	14800		=370000*8%*6/12
	Notes payable	370000
	Cash		384800