(a) Use the credit card statement to help fill in the table below. Note that there are 30 days in April. Also, a purchase increases the unpaidpayment decreases the unpaid balance.DateTransactionTransaction Unpaidamount balanceNumber of days at that balanceUnpaid Numberbalance of daysApril 1 Beginning balance$2150.30 $2150.30 8 days (from April 1 through April 8)$17,202.40April 9 Purchase$600.50 $2750.80April 23 Payment$984.00April 26 Purchase$450.52days (from April 9 through April 22)S3 days (from April 23 through April 25)S5 days (from April 26 through April 30)Total: 30 days$$$0Total: $(b) Find the average daily balance. Write your answer to the nearest cent.$(c) Suppose the credit card company charges an interest rate of 1.4% on the average daily balance for April foundin part (b). How much interest will be charged? Write your answer to the nearest cent.$(d) What will Shen's beginning balance be for the month of May (including the interest for April found in part (c))?$5

Answered: (a) Use the credit card statement to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. A credit card statement showed these transactions during October.October 1 Previous balance $257.28October 12 Purchases $79.55October 29 Payment $55.00The credit card has an interest rate of 4.5% on the average daily balance. Findthe average daily balance, the finance charge for the month, and the newbalance on November 1. [Hint: Remember that October has 31 days.]
Calculate the average daily balance (in $) for October for a revolving credit account with a previous month's balance of $120 and the following activity. (Round your answer to the nearest cent.) Date Activity Amount October 3 Cash advance $50.00 October 7 Payment $75.00 October 10 Purchase $26.59 October 16 Credit $10.00 October 25 Purchase $122.60
K Use the unpaid balance method to find the finance charge on the credit card account for April. The starting balance from the previous month is $230. The transactions on the account for the month are given in the table to the right. Assume an annual interest rate of 23% on the account and that the billing date is April 1st The finance charge for the month of April is S (Round to the nearest cent as needed.) COLD Date April 5 April 6 April 10 April 12 Charged $145 for a coat Made payment of $146 Charged $28 for DVDs Charged $34 for groceries Transaction
Using the table, what is the average daily balance of the credit card for the July 1 - July 31 billing period? Round your answer to the nearest cent. Day Activity Adjustment Closing Balance 1 ----- ------ 8000 9 Payment −700 7300 19 Purchase +550 7850 27 Payment −600 7250
Consider the following credit card activity for the month of September: Date Balance September 1 $0 September 6 $563 September 14 $1,192 September 18 $1,536 September 25 $2,222 If this card's annual APR is 22.9% and the September balance is not paid during the grace period, how much interest is owed for September? • There are 30 days in September. Round your answer to the nearest dollar.
Try Yourself - Question 2 Consider the following purchase history during October: Date Balance # of Days October 1 $110 8 October 9 $150 5 October 14 $260 8 October 22 $347 7 October 29 $612 3 The APR for this card is 16.45%. If the balance is not paid within the grace period, what is the total owed to the credit card company for this month? A. $261 B. $869 C. $616 D. $612 E. $704
Using the table, what is the average daily balance of the credit card for the November 1 - November 30 billing period? Round your answer to the nearest cent.Do not include a dollar sign or comma in your answer. For example, $5, 678.00 should be entered as 5678.00. Day Activity Adjustment Closing Balance 1 7500 11 Payment -500 7000 21 Payment -750 6250 30 Purchase +250 6500
uppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $389.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.) Statement of Account Billing cycle: July 1–31 DATE DESCRIPTION OF TRANSACTIONS CHARGES July 04 Kit and Capoodle Pets $109.08 July 08 Payment 61.00 July 16 Cash advance 98.82 July 22 Mountain Vineyards 31.37 July 29 Vu Video (credit) 95.97 $
7. Raoul's credit card statement showed these transactions during May. May 1 May 6 May 10 May 15 May 26 Previous balance $304.29 Payment $100.00 Purchases $58.10 Payment $100.00 Purchases $114.73 18% per month on the average daily balance. Find the average daily balance, The interest rate is the finance charge for the month, and the new balance on June 1. [Hint: Remember that May has 31 days.]
Consider the following credit card activity for the month of September: Date Balance September 1 $0 September 7 $331 September 13 $935 September 21 $1,552 September 25 $ 2,208 If this card's annual APR is 20.9% and the September balance is not paid during the grace period, how much interest is owed for September? There are 30 days in September. Round your answer to the nearest dollar.
Using the unpaid balance method find the current month's finance charge on a credit card account having the following transactions Last month's balance $895 Last payment $230 Annual Interest rate 15% Purchases $464 Returns $862
You have a credit card that charges an interest rate of 1.8% compounded monthly. The table below shows your activity for the month of December. Date Activity Amount December 1 Beginning Balance 1327.24 December 9 Purchase 28.84 December 10 Payment −150 December 16 Purchase 97.76 December 22 Purchase 14.56 December 23 Purchase 54.47 December 31 Closing Date What is the statement balance due for December?

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