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Barrett Company Obtained a $80,000 Line of Credit from the Garden

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Barrett Company obtained a $80,000 line of credit from the Garden State Bank on January 1, 2014. 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 2014 are shown in the following table. Assume that Barrett 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. Barrett Company obtained a $80,000 line of credit from the Garden State Bank on January 1, 2014. 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 2014 are shown in the following table. Assume that Barrett 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.   The amount of interest expense recognized in March, rounded to the nearest dollar, would be A)  $219. B)  $160. C)  $69. D)  $204. The amount of interest expense recognized in March, rounded to the nearest dollar, would be

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Definitions:

Zygomatic

Pertaining to the zygomatic bone, a prominent bone on the side of the skull that forms part of the cheekbone.

Ethmoid

A spongy bone located between the eyes that forms part of the nasal cavity and the orbit of the eye in the skull.

Lacrimal

Pertaining to tears or the glands that produce tears, which are essential for lubricating and protecting the eyes.

Tarsals

A group of seven bones in the foot located between the lower leg bones and the metatarsals, contributing to the structure of the ankle.

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