For the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.1% per month on the average daily balance Find (a) the average dailybalance, (b) the monthly finance charge, and (e) the account balance for the next billingPrevious Balance: $485.26January 13 Billing DateJanuary 15 RetumsJanuary 20 ClothesJanuary 27 Bus SicketsFebruary 2 PaymentFebruary 6 Flowers$105.09$114.34$76.83$130$64.41(a) The average daily balance is(Round to the nearest cent as needed.)(b) The finance charge is(Round to the nearest cent as needed)(c) The account balance for the next billing is $(Round to the nearest cent as needed.)

According to given information the last month balance = $485.26 And the billing date is January…

Answered: For the credit card account, assume one…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Suppose that your credit card activity for December looked like this: Date Activity December 5 $234 purchase December 11 $357 purchase December 15 $312 purchase December 21 $494 purchase December 25 $131 purchase What was your average daily balance for December? Round your answer to the nearest dollar
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $4000 balance, 16%, $2,500 payment (a) previous balance method $ 53.33 (b) adjusted balance method $ 20.00 (c) average daily balance method x
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.5% of the average daily balance. Calculate parts a-d using the statement in the popup. a. Find the average daily balance for the billing period. Round to the nearest cent. The average daily balance for the billing period is $__?
The credit card with the transactions described in the popup below uses the average daily balance method to calculate interest. The monthly interest rate is 1.5% of the average daily balance. A. Find the interest to be paid on july 1, the next billing date. Round to the nearest cent. The interest to be paid on july 1 $__
Calculate the missing information on the revolving credit account. Interest is calculated on the unpaid or previous month's balance. Monthly Periodic Purchases Payments and Cash Advances Annual Finance New Previous Balance Percentage Rate (APR) Charge (in $) and Balance Rate Credits (in $) (as a %) $15.00 12% % $177.40 $45.00
A credit card has a monthly rate of 1.6% and uses the average daily balance method for calculating interest. Here are some of the details in the June 1-June 30 itemized billing: June 1 Unpaid Balance: $450.98 Payment Received June 9: $130 Purchases Charged to the Account: $259.1 Average Daily Balance: $355.65 Last Day of the Billing Period: June 30 Payment Due Date: July 9. Click the icon to view the table. O A. a. $5.51 b. $326.49 c. $20.00 O c. a. $5.69 b. $585.77 c. $58.58 a. Find the interest due on the payment. due date. b. Find the total balance owed on the last day of the billing period. c. Minimum payment terms are shown in the accompanying table. What is the minimum payment due by July 9? C OB. a. $5.76 b. $320.98 c. $20.00 OD. a. $5.76 b. $676.63 3. $58.58
A credit card issuer calculates interest using the average daily balance method. The monthly interest rate is 1.1% of the average daily balance. The following transactions occurred during the November 1 – November 30 billing period. Transaction Description Transaction Amount Previous balance, $4620.80 November 1 Billing date November 7 Payment $650.00 credit November 11 Charge: Airline Tickets $350.25 November 25 Charge: Groceries $125.70 November 28 Charge: Gas $38.25 November 30 End of billing period Payment Due Date: December 9 Find the average daily balance for the billing period. Round to the nearest cent. Find the interest to be paid on December 1, the next billing date. Round to the nearest cent. Find the balance due on December 1. This credit card requires a $10 minimum monthly payment if the balance due at the end of the billing period is less than $360. Otherwise, the…
Suppose that your credit card activity for December looked like this: Date Activity December 5 $323 purchase December 10 $430 purchase December 15 $217 purchase December 20 $344 purchase December 25 $171 purchase What was your average daily balance for December? Round your answer to the nearest dollar.
Alexis Monroe, a biologist from Dyersburg, Tennessee, is curious about the accuracy of the interest charges shown on her most recent credit card billing statement. Interest Charged Interest Charge on Purchases $6.40 Interest Charge on Cash Advances $4.65 TOTAL INTEREST FOR THIS MONTH $11.05 Use the average daily balances provided to recalculate the interest charges, and compare the result with the amount shown on the statement. Round your answers to the nearest cent. Annual Percentage Balances Subject to Type of Balance Rate (APR) Interest Rate Interest Charge Purchases 15.14% (V) $513.39 $ Cash Advances 22.43% (V) $252.98 $ Balance Transfers 0.00% $637.50 $ Penalty APR 28.99% $ 0.00 $
Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 27%. Complete the account activity table for Kathy. (Round your answers to the nearest cent.) Month June July Need Help? Previous Month's Balance (in $) $693.96 Submit Answer $822.08 Read It tA Finance Charge (in $) $18.50 X Purchases and Cash Advances $153.38 $76.59 Payments and Credits $300.00 $120.00 New Balance End of Month (in $) $693.96 X
calculate the monthly finance charge for the credit card transaction assume that it takes 10 days for the payment to be received and recorded and the month is 30 days long (round your answer to the nearest cent) $675 balance 15%, $625 payment, average daily balance method $___________
A credit card balance at the beginning of November is $4,000. On Nov. 3 a $300 charge is made. On Nov. 8 a $1000 charge is made. On Nov. 15 a $900 payment is made. On Nov. 17 a $200 charge is made. On Nov. 21 a $800 charge is made. using the average daily balance method, Caculate the interest charged if the account has a 17.5% rate and the billing period is 30 days.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS