Franklin Company Obtained an $160,000 Line of Credit from the State

question 63

Multiple Choice

Franklin Company obtained an $160,000 line of credit from the State Bank on January 1,2016.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 2016 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.
Based on this information alone,the amount of interest expense recognized in March would be closest to:

• A)$232.
• B)$262.
• C)$292.
• D)$408.

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Definitions:

Early Majority Stage

A stage in the product adoption lifecycle where a product begins to gain acceptance among a larger segment of the population, following the innovators and early adopters.

Marketers

Professionals who are involved in the promotion, selling, and distribution of products or services, aiming to meet the needs and wants of consumers.

Alpha Testing

A phase of software testing where a product is tested internally by the developer or company before it's made available to external testers.

Beta Testing

A phase of product development where a sample of the intended audience uses the product in a real environment to identify any final issues before full-scale release.