The Tomac Swim Club arranged short-term financing of $13,000.00 on July 19 with the Bank of Comm and secured the loan with a demand note. The club repaid the loan by payments of $6100 on Septeml 13, $3200 on November 25, and the balance on December 30. Interest, calculated on the daily balanc and charged to the club's current account on the last day of each month, was at 6% per annum on July The rate was changed to 6.5% effective September 1 and to 5.5% effective December 1. How much interest was paid on the loan?

Barton Company has a line of credit with Sea View Bank. Barton can borrow up to $200,000 at any time over the course of Year 2. The following table shows the interest rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 2. 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. Month January February March Multiple Choice $1,500. Borrowed/ (Repaid) $25,000 (5,000) 20,000 Based on this information, the amount of interest expense Barton would recognize in February is $1,800. $150. Amount $125. Annual Interest Rate 6% 9% 9%

Singer Company has a line of credit with United Bank. Singer can borrow up to $400,000 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 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, Singer pays 6.5 percent (4.5 percent + 2 percent) annual interest on $140,000 for the month of February. Month Amount Borrowed or (Repaid) Prime Rate for the Month January $80,000 4.0% February 60,000 4.5 March (20,000) 4.0 Required Provide all journal entries pertaining to Singer’s line of credit for the first three months of Year 1.

Colson Company has a line of credit with Federal Bank. Colson can borrow up to $315,500 at any time over the course of the 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 the year. Colson agreed to pay interest at an annual rate equal to 2.00 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, Colson pays 6.25 percent (4.25 percent + 2.00 percent) annual interest on $76.000 for the month of January. Month January February March April Amount Borroed or (Repaid) $ 76,000 121,200 (20,900) 27,500 Prime Rate for the Month 4.25% 3.25 3.75 4.25 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of…

Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 9 percent, recognized on December 31 A. Compute the interest recognized as of December 31 in year 1. $15,750 ✓✔ B. Compute the principal due in year 1.

The Tomac Swim Club arranged short-term financing of $12,500 on July 20 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $5,000 on September 15, $4,000 on November 10, and the balance on December 30. Interest, calculated on the daily balance and charged to the club's current account on the last day of each month (the separate interest method), was at 9.5% per annum on July 20. The rate was changed to 8.5% effective September 1 and to 9% effective December 1. How much interest was paid on the loan? July 31 Calculate the interest charged on July 31. August 31 Calculate the interest charged on August 31. September 31 Calculate the interest accrued to September 14. Calculate the new balance on September 15. Calculate the interest accrued to September 30. Calculate the interest charged on September 30. October 31 Calculate the interest charged on October 31. November 30 Calculate the interest accrued to November 9. Calculate the new…

Bridgeport Company has a line of credit with National Bank. Bridgeport can borrow up to $1,040,000 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 two months of Year 1. Bridgeport agreed to pay interest at an annual rate equal to 1 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, Bridgeport pays 4 percent (3 percent + 1 percent) annual interest on $154,800 for the month of January. Month January February Month Amount borrowed or (repaid) January February $154,800 (31,600) Required: Compute the amount of (a) interest paid and (b) Bridgeport's liability balance at the end of each of the first two months. Prime rate for the (a) Interest Paid month 3% 3.5% (b)…

An automotive dealer borrowed $8200.00 from the Bank of Montreal on a demand note on May 8. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 8th of each month. The automotive dealer made a payment of $2300 on July 12, a payment of $3900 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 8 was 8% per annum. The rate was changed to 8.6% on August 1 and to 8.95% on October 1. What was the total interest cost for the loan?

Colson Company has a line of credit with Federal Bank. Colson can borrow up to $436,000 at any time over the course of the 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 the year. Colson agreed to pay interest at an annual rate equal to 2.00 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, Colson pays 6.25 percent (4.25 percent +2.00 percent) annual interest on $77,700 for the month of January. Amount Borrowed Prime Rate for the Month Month January February March April or (Repaid) $ 77,700 4.25% 120,700 (16,500) 28,400 3.25 3.75 4.25 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of…

Franklin Company obtained a $110,000 line of credit from the State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Borrowing is shown as a positive amount and repayments are shown as negative amounts indicated by parentheses. 1-January 1-February 1-Marchi Amount Borrowed Prime Rate for the Month 4.08 4.58 5.08 Based on this information alone, the amount of interest expense recognized in March would be closest to: (Do not round intermediate calculations. Round your answer to the nearest whole number.) Multiple Choice $177, $309. (Repaid) $ 32,000 (11,000) 32,000 $199.