Answer Happy

Camden Biotechnology began operations in September 2021. The following selected transactions relate to liabilities of the company for September 2021 through March 2022. Camden's fiscal year ends on December 31 Its financial statements are issued in April. 2021 a On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $23.000.000 at the bank's prime rate (9.5% at the time). The company will pay no commitment fees. b. On October 1, borrowed $20 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 9% was payable at maturity Management planned to issue 10-year bonds in February to repay the note. Received $1,800 of refundable deposits in December for reusable containers used to transport and store chemical-based products. d For the September-December period, sales on account totaled $4,740.000. The state sales tax rate is 3% and the local sales tax rate is 3% (This is a summary journal entry for the many individual sales transactions for the period) e Recorded the adjusting entry for accrued interest 2022 In March, paid the entire amount of the note on its March 1 due date, using proceeds from a February issuance of $17.5 million of 10 year bonds at face value along with other available cash. a. The storage containers covered by refundable deposits are expected to be returned during the first nine months of the year Half of the containers were returned in March 2022
g. The storage containers covered by refundable deposits are expected to be returned during the first nine months of the year Half of the containers were returned in March 2022 Required: 1. Prepare the appropriate journal entries for items a-g 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Trade accounts payable on that date were $296.000 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Trade accounts payable on that date were $296,000. (Enter your answers in whole dollars) Return t Camden Biotechnology Balance Sheet (partial) At December 31, 2021
No 1 2 3 4 5 6 Transaction a b C d e 1-1 No journal entry required Cash Notes payable Cash Liability-refundable deposits Accounts receivable Sales revenue Sales taxes payable Interest expense Interest payable General Journal Cash Bonds payable 33 000 30 33 Debit 20,000,000 1.800 5,024,400 450,000 17,500,000 Credit 20,000,000 1.800 4.740,000 284 400 450,000 17,500,000
5 6 7 8 4 1-1 1-2 9 Interest expense Interest payable Cash Bonds payable Notes payable Interest payable Interest expense Cashi Liability-refundable deposits Cash 33 33 000 450,000 17.500,000 20,000,000 450,000 300,000 Required 2 > 900 450,000 17,500,000 20,750,000 900
7 ts Prepare the current and long-term liability sections of the December 31, 2021, balance sheet. Trade acco date were $296,000. (Enter your answers in whole dollars.) Current liabilities: Camden Biotechnology Balance Sheet (partial) At December 31, 2021 Accounts payable Current portion of notes payable Interest payable Sales taxes payable Liability-refundable deposits Total current liabilities Long-term liabilities: Notes payable to be refinanced on a long-term basis 296,000 0 450,000 284,400 1,800 $ 1,032,200 $17.500,000