On February 2, the billing date, Carol Ann had a balance due of$129.95 on her credit card. Her bank charges an interest rate of1.25% per month. She made the transactions described in thetable during the month.Feb. 9Feb. 12Feb. 20Feb. 25a) Determine the finance charge on March 2, using the previous balance method.Charge: Art suppliesPaymentCharge: Flowers deliveredCharge: Music CD$25.37$100.00$66.26$11.99b) Determine the new balance on March 2.a) The finance charge on March 2 is $(Round to the nearest cent as needed.)b) The new balance due on March 2 is $(Round to the nearest cent as needed.)

Under previous balance method, interest is calculated on the previous month's ending balance. Thus,…

Answered: On February 2, the billing date, Carol…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 5EA: Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200....

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O Previous Balance Method: On February3, the billing date. Carol Ann Bluesky had a balance due of $124.78 on her credit card. Her bank charges an interest rate of 1.25% per month. She made the following transactions during the month. February 8 Charge: Art supplies $25.64 February 12 Payment 100.00 February 14 Charge: Flowers delivered 67.23 February 25 Charge: Music CD 13.90 Find the finance charge on March 3, using the previous balance method. Find the new balance on March 3.
Kathy Hansen has a revolving credit account. The finance charge is calculated on the previous month's balance, and the annual percentage rate is 12%. Complete the following account activity table for Kathy. Round your answers to the nearest cent. Previous Purchases New Balance Month's Finance and Cash Payments End of Month Balance Charge Advances and Credits Month May $540.00 $177.53 $585.00
Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?
The credit card with the itemized billing statement below uses the average daily balance method to calculate interest. The monthly interest rate is 1.7%. Find the minimum monthly payment due on July 9 if the minimum monthly payment is 1/25th of the balance due on July 1st, rounded up to the nearest dollar. Show work. Transaction description Previous balance, $2645.04 Billing Date Payment Charge: Gas Charge: groceries End of billing period June 1 June 6 June 8 June 17 June 30 Payment Due Date: July 9 Transaction amount $1800.00 credit $41.37 $130.01
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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 1.6% of the average daily balance. Calculate parts a-d using the statement in the popup. transaction description transaction amount previous balance, $2646.05 June 1 billing date June 6 payment $1000.00 credit June 8 charge: gas $36.02 June 9 charge: groceries $138.48 June 17 charge: gas $42.18 charge: groceries $126.42 June 27 charge: clothing $215.69 June 30 end of billing period Payment due date: July 9 A) Find the average daily balance for the billing period. Round to the nearest cent. B) Find the interest to be paid on July 1, the next billing date. Round to the nearest cent. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) C) Find the balance due on July 1. (Use the answer from part b to find this answer.) D) This credit card requires…
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The activity on Denise Hellings' Sears account for one billing period is shown below. Find the average daily balance and the finance charge if the billing period is March 1 through March 31, the previous balance was $152.72, and the annual simple interest rate is 21%. (Round your answers to the nearest cent.) March 5 payment $20.00 March 17 tools $35.43 average daily balance $ finance charge $
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