Here is Ahmad's credit card statement for the month of November. Transaction Date Transaction amount November 1 Beginning balance $1500.03 November 15 Payment $540.00 November 21 Purchase $28.85 November 25 Payment $200.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in November. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Transaction Unpaid Number of days at that Unpaid Number balance" of days Date Transaction amount balance balance 14 days (from November 1 Beginning balance $1500.03 $1500.03 November 1 $21,000.42 through November 14) O days (from November 15 November 15 Payment $540.00 $960.03 through November 20) November 21 Purchase $28.85 4 days (from November 21 through November 24) November 25 Payment $200.00 6 days (from November 25 through November 30) Total: 30 days Total: SI (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 November found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Ahmad's beginning balance be for the month of December (including the interest for November found in part (c))?
Here is Ahmad's credit card statement for the month of November. Transaction Date Transaction amount November 1 Beginning balance $1500.03 November 15 Payment $540.00 November 21 Purchase $28.85 November 25 Payment $200.00 (a) Use the credit card statement to help fill in the table below. Note that there are 30 days in November. Also, a purchase increases the unpaid balance, and a payment decreases the unpaid balance. Transaction Unpaid Number of days at that Unpaid Number balance" of days Date Transaction amount balance balance 14 days (from November 1 Beginning balance $1500.03 $1500.03 November 1 $21,000.42 through November 14) O days (from November 15 November 15 Payment $540.00 $960.03 through November 20) November 21 Purchase $28.85 4 days (from November 21 through November 24) November 25 Payment $200.00 6 days (from November 25 through November 30) Total: 30 days Total: SI (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 November found in part (b). How much interest will be charged? Write your answer to the nearest cent. (d) What will Ahmad's beginning balance be for the month of December (including the interest for November found in part (c))?
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 14E: Guardian Services Inc. had the following transactions during the month of April: a. Record the June...
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Transcribed Image Text:Here is Ahmad's credit card statement for the month of November.
Transaction
Date
Transaction
amount
November 1
Beginning balance
$1500.03
November 15 Payment
$540.00
November 21 Purchase
$28.85
November 25 Payment
$200.00
(a) Use the credit card statement to help fill in the table below. Note
that there are 30 days in November. Also, a purchase increases the
unpaid balance, and a payment decreases the unpaid balance.
Transaction
Unpaid
Number of days at that
Unpaid Number
balance" of days
Date
Transaction
amount
balance
balance
Beginning
14 days (from November 1
through November 14)
O days (from November 15
through November 20)
4 days (from November 21
November 1
$1500.03 $1500.03
$21,000.42
balance
November 15 Payment
$540.00
$960.03
November 21 Purchase
$28.85
through November 24)
6 days (from November 25
November 25 Payment
$200.00
through November 30)
Total: 30 days
Total: $
(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 November found in part (b). How
much interest will be charged? Write your answer to the nearest
cent.
(d) What will Ahmad's beginning balance be for the month of December
(including the interest for November found in part (c)?
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