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ort-term notes January 31 The following selected transactions relate to liabilities of United Insulation Corporation. United's fiscal year ends on December 31. Required: Prepare the appropriate journal entries through the maturity of each liability 2013-2 2018 Jan. 13 Feb. 1 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 $20 million at the bank's prime rate. Arranged a three-month bank loan of $5 million with Parish Bank under the line of credit agreement. Interest at the prime rate of 10% was payable at maturity, Paid the 10% note at maturity. Supported by the credit line, issued $10 million of commercial paper on a nine-month note. Interest was discounted at issuance at a 9% discount rate Recorded any necessary adjusting entry(s). May 1 Dec. 1 31 2019 Sept. 1 Paid the commercial paper at maturity. future Ences JWS Transport Company's employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates). During 2018. total wages paid to employees equaled $404,000, including 54,000 for vacations actually taken in 2018 but not including vacations related to 2018 that will be taken in 2019. All vacations earned before 2018 were taken before January 1, 2018. No accrual entries have been made for the vacations. No overtime premium and no durine the period.

Answer 1

solution entries through prepare the neccesary Journal the maturity of each liability: Accounts and explanation Debit (& credit(&) ($) -- Date 2018 feba cash 5000000 5000000 Shost-Teom notes payable (To record the bestowed of cash on 10/notes payable) 2018 may 2 500 DOD 5125ou uable at maturity Slegt-tes tea potny 195000 Interest expense (5odovoÚX 10%, x 3/2) shost-term notes payable cash (To record the payment of 10% notes payable at maturity.) cash Discount on notes parjable (100000wx9hx 9/12) alotes payable To record the issue of notes at a% discounted rate) 1 9325000 2018 Dec. 1 1675000 10 000 000

Date Account and explanation Debit (6) credits) 2018 Interest expense 4SOUD Dec-31 (10ood000x9%x119) Discount on notes sovo payable (To record the interest expense for 1 month) 2019 Sep-1 60oooo Interest expense I Cloou coux 9%8/12) Discount on notes pargable (to record the interest expenses for 8 months) 6ooooo pensable 102D200000 lotes cash TODc0000 To record the payment of Commercial papper at maturity)