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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 $455,000 at any time over the course of the 2016 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 2016. Singer agreed to pay interest at an annual rate equal to 3.50 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 7.25 percent (3.75 percent + 3.50 percent) annual interest on $77,000 for the month of January Amount Borrowed Prime Rate for or (Repaid) the Month, % Month January February March 77,000 119,800 (16,600) 3.75 2.75 3.25 Required Provide all journal entries pertaining to Singer's line of credit for the first three months of 2016. (Round your final answers to the nearest dollar amount.. If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list 1 Record the cash borrowed. 2 Record the interest expenses paid. 3 Record the cash borrowed 4 Record the interest expenses paid. 5 Record the repayment of borrowed amount 6 Record the interest expenses paid. Credit

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