1. The following selected transactions relate to the liabilities of Packard Inc. for portions of 2024...

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1. The following selected transactions relate to the liabilities of Packard Inc. for portions of 2024 and 2025. Packard's fiscal year ends on December 31. 2024 July 1 August 9 October 7 November 1 December 1 December 31 2025 June 1 October 1 Arranged an uncommitted short-term line of credit with First National Bank amounting to $6,000,000 at the bank's prime rate (6% in July). Packard will pay no commitment fees for this arrangement. Received a $20,000 refundable deposit from a major customer for mailing containers used to transport communications equipment. The cost of the containers was $15,000. Received most of the mailing containers covered by the refundable deposit and a letter stating that the customer will retain containers represented by $2,000 of the deposit and forfeits that amount. The cost of the forfeited containers was $1,500. Borrowed $1,000,000 cash from First National Bank under the line of credit arranged in July and issued a seven-month promissory note. Interest at the prime rate of 6% is payable at maturity. Supported by the line of credit arranged in July, issued $2,000,000 of commercial paper on a ten-month note. Interest was discounted at issuance at an 8% discount rate. Recorded all necessary adjusting entries. Paid the First National Bank promissory note issued on November 1, 2024. Paid the First National Bank commercial paper note issued on December 1, 2024. Required: Prepare all required journal entries for 2024 and 2025. 1. The following selected transactions relate to the liabilities of Packard Inc. for portions of 2024 and 2025. Packard's fiscal year ends on December 31. 2024 July 1 August 9 October 7 November 1 December 1 December 31 2025 June 1 October 1 Arranged an uncommitted short-term line of credit with First National Bank amounting to $6,000,000 at the bank's prime rate (6% in July). Packard will pay no commitment fees for this arrangement. Received a $20,000 refundable deposit from a major customer for mailing containers used to transport communications equipment. The cost of the containers was $15,000. Received most of the mailing containers covered by the refundable deposit and a letter stating that the customer will retain containers represented by $2,000 of the deposit and forfeits that amount. The cost of the forfeited containers was $1,500. Borrowed $1,000,000 cash from First National Bank under the line of credit arranged in July and issued a seven-month promissory note. Interest at the prime rate of 6% is payable at maturity. Supported by the line of credit arranged in July, issued $2,000,000 of commercial paper on a ten-month note. Interest was discounted at issuance at an 8% discount rate. Recorded all necessary adjusting entries. Paid the First National Bank promissory note issued on November 1, 2024. Paid the First National Bank commercial paper note issued on December 1, 2024. Required: Prepare all required journal entries for 2024 and 2025.

Answer rating: 100% (QA)

Sure here are the journal entries for the transactions of Packard Inc for 2024 and 2025 For 2024 Jul... View the full answer