5 Sea Marine Co uses a line of credit to help finance its inventory purchases Sea Marine sells boats and equipment and uses the line of credit to build inventory for its peak sales months, which tend to be clustered in the summer months Account balances at the beginning of 2014 were as follow s Cash Inventory Common stock Retained earnings $50,000 87,000 70,000 69,000 Sea Marine experienced the following transactions for April, May, and June, 2014 1 April 1, 2014, obtained approval for a line of credit of up to $240,000 Funds are to be obtained or repaid on the first day of each month The interest rate is the bank prime rate plus 1 percent 2 April 1, 2014, borrowed $35,000 on the line of credit The bank's prime interest rate is 6 percent for January 3 April 15, purchased inventory on account, $77,000 4 April 31, paid other operating expenses of $10,000 5 In April, sold inventory for $68,000 on account The inventory had cost $45,000 6 April 30, paid the interest due on the line of credit 7 May 1, borrowed $80,000 on the line of credit The bank's prime rate is 6 percent for May 8 May 1, paid the accounts payable from transaction 3 9 May 10, collected $65,000 of the sales on account 10 May 20, purchased inventory on account, $81,000 11 May sales on account were $118,000 The inventory had cost $74,000 12 May 31, paid the interest due on the line of credit 13 June 1, repaid $27,000 on the line of credit The bank's prime rate is 6 percent for June 14 June 5, paid $50,000 of the accounts payable 15 June 10, collected $98,000 from accounts receivable 16 June 20, purchased inventory on account, $65,000 17 June sales on account were $135,000 The inventory had cost $85,000 18 June 31, paid the interest due on the line of credit Required a What is the amount of interest expense for April, May and June (Do not round intermediate calculations and round your answers to nearest whole dollar amount ) Interest Expense ril ay une b What amount of cash was paid for interest in April, May and June (Do not round intermediate calculations and round your answers to nearest whole dollar amount ) Interest Paid ril une

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5 Sea Marine Co  uses a line of credit to help finance its inventory purchases  Sea Marine sells boats and equipment and uses the line of credit to build inventory for its peak sales months, which tend to be clustered in the summer months  Account balances at the beginning of 2014 were as follow s Cash Inventory Common stock Retained earnings $50,000 87,000 70,000 69,000 Sea Marine experienced the following transactions for April, May, and June, 2014 1  April 1, 2014, obtained approval for a line of credit of up to $240,000  Funds are to be obtained or repaid on the first day of each month  The interest rate is the bank prime rate plus 1 percent  2  April 1, 2014, borrowed $35,000 on the line of credit  The bank's prime interest rate is 6 percent for January 3  April 15, purchased inventory on account, $77,000 4  April 31, paid other operating expenses of $10,000 5  In April, sold inventory for $68,000 on account  The inventory had cost $45,000 6  April 30, paid the interest due on the line of credit  7  May 1, borrowed $80,000 on the line of credit  The bank's prime rate is 6 percent for May 8  May 1, paid the accounts payable from transaction 3 9  May 10, collected $65,000 of the sales on account 10  May 20, purchased inventory on account, $81,000 11  May sales on account were $118,000  The inventory had cost $74,000 12  May 31, paid the interest due on the line of credit  13  June 1, repaid $27,000 on the line of credit  The bank's prime rate is 6 percent for June 14  June 5, paid $50,000 of the accounts payable 15  June 10, collected $98,000 from accounts receivable 16  June 20, purchased inventory on account, $65,000 17  June sales on account were $135,000  The inventory had cost $85,000 18  June 31, paid the interest due on the line of credit  Required a  What is the amount of interest expense for April, May and June  (Do not round intermediate calculations and round your answers to nearest whole dollar amount ) Interest Expense ril ay une b  What amount of cash was paid for interest in April, May and June  (Do not round intermediate calculations and round your answers to nearest whole dollar amount ) Interest Paid ril une

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5 Sea Marine Co. uses a line of credit to help finance its inventory purchases. Sea Marine sells boats and equipment and uses the line

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