Question

1.

6 The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. 3.75 points X 02:01:04 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 $34.0 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $10.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity. May 1 Paid the 10% note at maturity. Dec. 1 Supported by the credit line, issued $19.0 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate. 31 Recorded any necessary adjusting entry(s). 2022 Sept. 1 Paid the commercial paper at maturity. eBook 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.) Hint Print View transaction list

• 1. 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 $34.0 million at the bank’s prime rate.
• 2. Record a three-month bank loan of $10.0 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity.
• 3. Record the payment of the 10% note at maturity.
• 4. Record the issuance of $19.0 million of commercial paper on a nine-month note, supported by the credit line. Interest was discounted at issuance at a 9% 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.

Answer 1

Journal entries (1-7)

All the entries is on page 1

All the calculation is on page 2