Dawkins Company has a line of credit with Federal Bank. Dawkins can borrow up to \(\$ 500,000\) at any time over the course of the 2011 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of 2011. Dawkins agreed to pay interest at an annual rate equal to 2 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Dawkins pays 5 percent ( 3 percent +2 percent) annual interest on \(\$ 80,000\) for the month of January.

Required
Provide all journal entries pertaining to Dawkins's line of credit for the first four months of 2011.

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Month January $80,000 Amount Borrowed or (Repaid) Prime Rate for the Month, % 3.0 February 60,000 3.5 March (20,000) 4.0 April 30,000 4.5