Show Attempt History Current Attempt in Progress On June 30, 2020, Kovacs Company borrowed $440,000 at a bank by signing a five-year, 10% loan. The terms of the loan require equal semi-annual principal payments plus interest beginning December 31, 2020. The loan agreement requires the company to maintain a current ratio of 2.5, The December 31, 2020, year-end statement of financial position, immediately prior to the bank loan repayment and the reclassification of long-term debt follows: Current assets $202,500 Current liabilities Loan payable $45,000 Non-current assets 513.500 440,000 Common shares 135,000 96,000 Retained earnings Total liabilities and shareholders' equity Total assets $716,000 $716,000 Prepare journal entries to record the principal and interest payment on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Interest Expense Lone Term Loan Payable 44000 eTextbook and Media