Required:1. Prepare the journal entry to record the borrowing of $35000 on Janua

Required:1. Prepare the journal entry to record the borrowing of $35000 on January 1 2009. By how much did this transaction increase or decrease the excess of current assets over current liabilities?2. Assume that Rocky Mountain used the entire amount of the loan to purchase inventory. Prepare the journal entry to record the purchase. By how much did this purchase increase or decrease the excess of current assets over current liabilities?3. Without violating the loan restriction how much more could Rocky Mountain borrow under its line of credit on January 1 2009 to invest in inventory? To invest in new equipment? Explain.