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Bridgeport Inc. is a new business that has been operating for just under two years...

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Accounting

Bridgeport Inc. is a new business that has been operating for just under two years with great success. Located on a beach, Bridgeport is in the business of everything to do with surfing The owner Alex is an avid surfer. In addition to selling boards and accessories, Alex provides surfing lessons on a regular basis, Some of the lessons are located on other beaches in the area. As a result, Alex purchased a new van for the company using a line of credit that the bank extended after the first year of operating the business. The bank found out that Alex did this during the annual review and required Alex take out a term loan to pay off the line of credit. The amountstill owing on the line of credit related to the van purchase is $40,900. The bank set up the term loan for 4 years, with a 5930 monthly payment (a) Prepare the journal entry for this refinancing arrangement. (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 O for the amounts List dehit entry before credit entry)

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