Question

ms 8 10 Camden Blotechnology began operations in September 2018. The following selected transactions relate to liablities of the company for September 2018 through March 2019. Camden's fiscal year ends on December 31. Its financlal statements are issued in April. 2018 a. On September 5, opened mercial Bank and negotiated a short-term line of credit of up to $21,000,000 at the bank's prime rate (9.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $18 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note interest at the prime rate of 9% was payable note. at maturity. Management planned to issue 10-year bonds in February to repay the c. Received $2,800 of refundable deposits in December for reusa d. For ble containers used to transport and store chemical-based products the September-December period, sales on account totaled rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.) e state tax rate is 3% and the local sales tax e. Recorded the adjusting entry for accrued interest. 2019 f. In February, issued $17 million of 10-year bonds at face value and paid the bank loan on the March 1 due date. g. Half of the storage containers covered by refundable deposits were returned in March. The remalning containers are expected to be returned during the next six months Required 1. Prepare the appropriate journal entries for 2018 and 2019 transactions. 2. Prepare the current and long-term liability sections of the December 31, 2018, balance sheet. Trade accounts payable on that date were $271,000 Complete this question by entering your answers in the tabs below. < Prey 8 of 10 Next > 16

Answer 1

68 g 69 70 71 72 73 74 75 76 Liability - Refundable Deposits 1,400 Cash 1,400 Balance sheet (Partial At December 31,2018 Current Liabilities Accounts Payable Current Portion of Notes Payable Sales Tax Payable Interest Payable Liability - Refundable Deposits Total current Liabilities Long Term Liabilities Note Payable to be refinances on long term basis 271,000 1,000,000 260,400 405,000 2,800 1,939,200 78 79 80 81 82 83 84 17,000,000