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July Statement Transaction Deposit Withdrawal Balance Date Description July 3 Balance - 516.31 6 Cheque 263 468.00 - 984.31 Cheque 264 Deposit 12 307.00 - 1291.31 17 1686.00 394.69 23 Cheque 265 135.00 259.69 29 Cheque 266 244.00 15.69 31 ? Print Done

July Statement Transaction Deposit Withdrawal Balance Date Description July 3 Balance - 516.31 6 Cheque 263 468.00 - 984.31 Cheque 264 Deposit 12 307.00 - 1291.31 17 1686.00 394.69 23 Cheque 265 135.00 259.69 29 Cheque 266 244.00 15.69 31 ? Print Done

FINANCIAL ACCOUNTING
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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July Statement Transaction Deposit Withdrawal Balance Date Description July 3 Balance - 516.31 - 984.31 Cheque 263 Cheque 264 Deposit 6 468.00 12 307.00 - 1291.31 17 1686.00 394.69 23 Cheque 265 135.00 259.69 29 Cheque 266 244.00 15.69 31 Print Done
Transcribed Image Text:July Statement Transaction Deposit Withdrawal Balance Date Description July 3 Balance - 516.31 - 984.31 Cheque 263 Cheque 264 Deposit 6 468.00 12 307.00 - 1291.31 17 1686.00 394.69 23 Cheque 265 135.00 259.69 29 Cheque 266 244.00 15.69 31 Print Done
Suppose your business has secured a line of credit and receives the accompanying statement of account for the month of July. The limit on your line of credit is $1000.00. You receive daily interest of 1.4% p.a. on positive balances and pay daily interest of 8% p.a. on negative (line of credit) balances. Overdraft interest is 16% p.a. on the daily amount exceeding your line of credit limit. There is a service charge of $5.00 for each transaction causing an overdraft or adding to an overdraft. Use this information to complete parts (a) through (e) below. E Click the icon to view the statement for the month of July (a) Calculate the amount of interest earned. Total interest earned = S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) Calculate the amount of interest charged on the line of credit. Total line of credit interest charged = $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) Calculate the amount of interest charged on overdrafts. Overdraft interest = S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) Calculate the amount of service charge. Service charge = SO (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (e) What is the account balance on July 31? The account balance on July 31 is dollars. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Next
Transcribed Image Text:Suppose your business has secured a line of credit and receives the accompanying statement of account for the month of July. The limit on your line of credit is $1000.00. You receive daily interest of 1.4% p.a. on positive balances and pay daily interest of 8% p.a. on negative (line of credit) balances. Overdraft interest is 16% p.a. on the daily amount exceeding your line of credit limit. There is a service charge of $5.00 for each transaction causing an overdraft or adding to an overdraft. Use this information to complete parts (a) through (e) below. E Click the icon to view the statement for the month of July (a) Calculate the amount of interest earned. Total interest earned = S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) Calculate the amount of interest charged on the line of credit. Total line of credit interest charged = $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) Calculate the amount of interest charged on overdrafts. Overdraft interest = S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) Calculate the amount of service charge. Service charge = SO (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (e) What is the account balance on July 31? The account balance on July 31 is dollars. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Next
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