The table below shows the expenses and payments for 8 months on a credit card account with an initial balance of $400. Assume that the interest rate is 1.0% per month (12% APR) and that interest for a given month is charged on the balance for the previous month. Complete the table. After 8 months, what is the balance on the credit card? E Click the icon to view the table of expenses and payments. - X Complete the table below. (Round to the nearest cent as needed) Month Payment | Expenses | Interest Balance Table of expenses and payments $400 $4.00 $204.00 1 $400 $200 Month Payment Expenses Interest Balance $400 $200 1.0% x $400 204.00 $225 $225 $400 = $4.00 $225 $360 $400 $225 $350 $350 $60 $80 $200 $70 3 4. 5 $100 $225 $110 6 Print Done

The table below shows the expenses and payments for 8 months on a credit card account with an initial balance of $400. Assume that the interest rate is 1.0% per month (12% APR) and that interest for a given month is charged on the balance for the previous month. Complete the table. After 8 months, what is the balance on the credit card? E Click the icon to view the table of expenses and payments. - X Complete the table below. (Round to the nearest cent as needed) Month Payment | Expenses | Interest Balance Table of expenses and payments $400 $4.00 $204.00 1 $400 $200 Month Payment Expenses Interest Balance $400 $200 1.0% x $400 204.00 $225 $225 $400 = $4.00 $225 $360 $400 $225 $350 $350 $60 $80 $200 $70 3 4. 5 $100 $225 $110 6 Print Done

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
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