Find the Loan Balance

Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credited sales are collected in the month following the sale. The June 30 balance sheet includes $15,000 in cash and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any given month when the preliminary cash balance is below $15,000. Interest is 1% per month based on the beginning of the month loan balance and is paid at each month-end. Any preliminary cash balance above $15,000 is used to re pay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10\%), office salaries (\$4,000 per month) and rent ( $6,500 per month). \begin{tabular}{|l|} \hline loangasece \\ \hline \\ \hline \end{tabular}