On March 27, 2013, Lincoln Corp. signed an agreement for a line of credit with the Washington Bank. Under the agreement, Lincoln can borrow up to $50,000 at any time during the following year. Lincoln will make any borrowings or repayments on the first day of a month and make interest payments on the last day of any month when a balance exists. The annual interest rate will be the bank's prime rate plus 2% and will be applied to the outstanding monthly balance. The following table gives the appropriate information for April, May, and June of 2013. Record all necessary journal entries on the dates indicated below. Round figures to the nearest dollar.

Question

On March 27, 2013, Lincoln Corp. signed an agreement for a line of credit with the Washington Bank. Under the agreement, Lincoln can borrow up to $50,000 at any time during the following year. Lincoln will make any borrowings or repayments on the first day of a month and make interest payments on the last day of any month when a balance exists. The annual interest rate will be the bank's prime rate plus 2% and will be applied to the outstanding monthly balance. The following table gives the appropriate information for April, May, and June of 2013.  Record all necessary journal entries on the dates indicated below. Round figures to the nearest dollar.

Quizplus · Accepted Answer

The Answer of On March 27, 2013, Lincoln Corp. signed an agreement for a line of credit with the Washington Bank. Under the agreement, Lincoln can borrow up to $50,000 at any time during the following year. Lincoln will make any borrowings or repayments on the first day of a month and make interest payments on the last day of any month when a balance exists. The annual interest rate will be the bank's prime rate plus 2% and will be applied to the outstanding monthly balance. The following table gives the appropriate information for April, May, and June of 2013.  Record all necessary journal entries on the dates indicated below. Round figures to the nearest dollar.