2013年10月28日星期一

Liabilitites accounting help!?

  • us bank credit card processing
  • paid credit report
  • pre paid credit
The following selected transactions relate to liabilities of United Insulation Corporation. United’s fiscal year ends on December 31.


2013

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 $20 million at the bank’s prime rate.


Feb.1

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.


May 1

Paid the 10% note at maturity.


Dec.1

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.


Dec 31

Recorded any necessary adjusting entry(s).


2014

Sept.1

Paid the commercial paper at maturity.



Required:

Prepare the appropriate journal entries through the maturity of each liability:


2013

Jan 13


Feb 1


May 1


Dec 1


Dec 31


2014

Sept 1




Thank you!!

Liabilitites accounting help!?

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