The following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31.
Jan.26 Negotiated a line of credit with City Bank that can be renewed annually upon bank approval.The amount available under the line of credit is $1 million at the bank's prime rate.
March 1 Arranged a six-month bank loan of $400,000 with City Bank under the line of credit agreement.Interest at the prime rate of 8% is payable at maturity.
September 1 Paid the 8% note at maturity.
Record the appropriate entries,if any,on January 26,March 1,and September 1.

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The Answer of The following selected transactions relate to liabilities of Food Emporium whose fiscal year ends on December 31.
Jan.26 Negotiated a line of credit with City Bank that can be renewed annually upon bank approval.The amount available under the line of credit is $1 million at the bank's prime rate.
March 1 Arranged a six-month bank loan of $400,000 with City Bank under the line of credit agreement.Interest at the prime rate of 8% is payable at maturity.
September 1 Paid the 8% note at maturity.
Record the appropriate entries,if any,on January 26,March 1,and September 1.

The Following Selected Transactions Relate to Liabilities of Food Emporium