Prepare the appropriate journal entries through the maturity

Assignment Help Accounting Basics
Reference no: EM132568376

Question - The following selected transactions relate to liabilities of United Insulation Corporation. United's ?scal year ends on December 31.

2016 -

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 $22.0 million at the bank's prime rate.

Feb. 1 Arranged a three-month bank loan of $3.0 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 $15.0 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).

2017 -

Sept. 1 Paid the commercial paper at maturity.

Required - Prepare the appropriate journal entries through the maturity of each liability 2016 and 2017.

Reference no: EM132568376

Questions Cloud

How did you negotiate the storming phase : Reflect on a team you currently belong to and see if you can identify Tuckman's stages of team development: Forming, Storming, Norming, Performing.
How the effectiveness of the programs can be measured : You know that many factors affect the overall satisfaction of employees. As part of your efforts to continually improve performance and employee satisfaction.
Calculate the unit product cost for the month : Calculate the unit product cost for the month. Reconcile the variable and absorption costing net operating incomes for the month.
How comfortable are you with the expression of emotions : How comfortable are you with the expression of emotions? are there emotions with which you feel relatively comfortable , and other emotions that are hard.
Prepare the appropriate journal entries through the maturity : Sept. 1 Paid the commercial paper at maturity. Prepare the appropriate journal entries through the maturity of each liability 2016 and 2017
Explain six problems facing developing countries : List and explain six problems facing developing countries.
What is the importance of conclusion : What is the importance of Conclusion?
Prepare necessary journal entry to account for income tax : Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied.Determine the taxable income and income tax payable
Organizer a literature review : What is the best way to organizer a literature review?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd