Date Transaction Deposit Withdrawal Balance Feb 1 Balance -450 Cheque 262 Deposit Cheque 263 Cheque 264 Feb 4 570 -1020 Feb 10 2250 1230 Feb 16 280 950 Feb 20 1090 -140 Feb 22 Cheque 265 Cheque 266 100 -240 Feb 27 160 -400 Feb 28 Daily interest of 1.5% p.a. is earned on all positive balances. Daily interest of 7% p.a. is charged on all negative (line of credit) balances. Overdraft interest of 18% p.a. is charged on daily amounts exceeding $1,000. Service charge of $5.00 is charged for each transaction causing an overdraft or adding to an overdraft. 1.) Determine the amount of interest earned. (a positive value) 2.) Determine the amount of interest charged on the line of credit. (a positive value) 3.) Determine the amount of interest charged on overdrafts. (a positive value) 4.) Determine the amount of service charges. (a positive value) 5.) Determine the account balance of Feb 28, 2021. (This will be a negative number!) Check
Date Transaction Deposit Withdrawal Balance Feb 1 Balance -450 Cheque 262 Deposit Cheque 263 Cheque 264 Feb 4 570 -1020 Feb 10 2250 1230 Feb 16 280 950 Feb 20 1090 -140 Feb 22 Cheque 265 Cheque 266 100 -240 Feb 27 160 -400 Feb 28 Daily interest of 1.5% p.a. is earned on all positive balances. Daily interest of 7% p.a. is charged on all negative (line of credit) balances. Overdraft interest of 18% p.a. is charged on daily amounts exceeding $1,000. Service charge of $5.00 is charged for each transaction causing an overdraft or adding to an overdraft. 1.) Determine the amount of interest earned. (a positive value) 2.) Determine the amount of interest charged on the line of credit. (a positive value) 3.) Determine the amount of interest charged on overdrafts. (a positive value) 4.) Determine the amount of service charges. (a positive value) 5.) Determine the account balance of Feb 28, 2021. (This will be a negative number!) Check
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6P
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