Question

CHLER my 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 $25.5 million at the bank's prime rate. Feb. 1 Arranged a three-month bank loan of $4.6 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 8% was payable at maturity. May 1 Paid the 8% note at maturity. Dec. 1 Supported by the credit line, issued $15.6 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 7% 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.) View transaction list 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 $25.5 million at the bank's prime rate. Note: Enter debits before credits. General Journal Debit Credit Date Jan 13, 2021

Answer 1

1	Jan 13,2021	No Journal Entry Required
2	Feb 1,2021	Cash	$    4,600,000.00
		Notes Payable		$   4,600,000.00
3	May 1,2021	Notes Payable	$    4,600,000.00
		Interest Expense	$      368,000.00
		Cash		$   4,968,000.00
4	Dec 01,2021	Cash	$ 14,781,000.00
		Discount on Notes payable	$      819,000.00
		Notes payable		$ 15,600,000.00
5	Dec 31,2021	Interest Expense	$    1,092,000.00
		Discount on Notes payable		$   1,092,000.00
6	Sep 01,2022	Interest Expense	$      728,000.00
		Discount on Notes payable		$     728,000.00
7	Sep 01,2022	Notes Payable	$ 15,600,000.00
		Cash		$ 15,600,000.00

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