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: $45,000 Current assets Non-current assets $202,500 Current liabilities 513,500 Loan payable 440,000 Common shares 135,000 96,000 Retained earnings Total liabilities and shareholders' equity Total assets $716,000 $716,000 Your answer is partially correct Prepare the journal entries to reclassify the portion of the long-term loan as current. (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 tities and enter for the amounts.) Account Titles and Explanation Debit Credit Long Term Loan Payable Current Portion of Long Term Debt eTextbook and Media List of Accounts Attempts: unlimited Submit Answer Save for Later Last saved 1 minute ago Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes