Hercules Sports Obtained a $60,000 Operating Line of Credit on March

Essay

Hercules Sports obtained a $60,000 operating line of credit on March 26. Interest charges at the rate of prime plus 2.5% were deducted from its chequing account on the eighteenth of each month. Hercules took an initial draw of $30,000 on March 31, when the prime rate was 5.25%. Further advances of $10,000 and $15,000 were taken on April 28 and June 1. Payments of $5,000 and $10,000 were applied against the principal on June 18 and July 3. The prime rate rose to 5.25% effective May 14. Present a repayment schedule showing details of transactions up to and including July 18.