Exercise 10-5A Journal entries for a line of credit LO 10-2

Singer Company has a line of credit with United Bank. Singer can borrow up to $412,500 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 1. Singer agreed to pay interest at an annual rate equal to 2.50 percent above the banks 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, Singer pays 6.50 percent (4.00 percent + 2.50 percent) annual interest on $76,900 for the month of February.

Month	Amount Borrowed or (Repaid)			Prime Rate for the Month
January	$	76,900			4.00	%
February		116,000			3.00
March		(23,900	)		3.50

Required Provide all journal entries pertaining to Singers line of credit for the first three months of Year 1. (Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Jan01	General	debit	credit

Record the interest expenses paid.

Jan 31	General	Debit	Credit

Record the cash borrowed

Feb 01	General	Debit	Credit

Record the interest expenses paid

Fab 28	General	Debit	Credit

Record the repayment of borrowed amount.

Mar01	Genera	Debit	Credit

Record the interest expenses paid.

Mar 31	general	debit	credit