The Following Selected Transactions Relate to Liabilities of Food Emporium

question 113

Essay

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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Definitions:

Crime

An illegal act punishable by a state or other authority.

Self-Esteem

An individual's subjective evaluation of their own worth or value, which can impact feelings of confidence and respect for oneself.

Violence

Any behavior involving physical force intended to hurt, damage, or kill someone or something.

Culture Of Honor

A society that places high value on individual respect, strength, and virtue, and accepts and justifies violent action in response to threats to one’s honor.