FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Credit card bills
Assume you open a credit card at the beginning of the year January 1 with an open in balance of zero the annual interest rate on the card is 18% and your bill is due each month starting in January the following charges and credits occur on your account :
Jan 5 -$ 45 gas charge
Jan 9 - $115 clothes charge
Jan 13 - groceries charge $85
Jan 14 - clothes CREDIT (return) $65
Jan 18 - lunch charge $11
Jan 25-$32 gas charge
Jan 27- $127 boots charge
Jan 29- $200 payment or credit
feb 2- $38 gas charge
feb 6- $58 groceries charge
feb 9- $199 car insurance charge
feb 14- $75 credit or payment
feb 17- $28 gas charge
feb 22 - $6 lunch charge
feb 23- $35 dinner and movie charge
feb 26- $78 groceries charge
feb 28- $150 payment or credit
Compare what your finance charge will be for the month of March using the average daily balance method in the unpaid balance method assume the year is not a leap year also assume the only things you charged and paid our listed above
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