Previous and adjusted balances

Assignment Help Accounting Basics
Reference no: EM13115994

Nancy Tai has recently opened a revolving charge account with MasterCard. Her credit limit is $1000, but she has not charged that much since opening the account. Nancy hasn't had the time to review her monthly statements as promptly as she should, but over the upcoming weekend, she plans to catch up on her work.

In reviewing November's statement, she notices that her beginning balance was $600 and that she made a $200 payment on November 10. She also charged purchases of $80 on November 5, $100 on November 15, and $50 on November 30. She can't tell how much interest she paid in November because she spilled watercolor paint on that portion of the statement. She does remember, though, seeing the letters APR and the number 16%. Also, the back of her statement indicates that interest was charged using the average daily balance method including current purchases, which considers the day of a charge or credit.

Assuming a 30-day period in November, calculate November's interest. Also, calculate the interest Nancy would have paid with: a) the previous balance method, b) the adjusted balance method.

Going back in time, when Nancy was just about to open her account, and assuming she could choose among credit sources that offered different monthly balance determinations, and assuming further that Nancy would increase her outstanding balance over time, which credit source would you recommend? Explain.

Reference no: EM13115994

Previous Q& A

  Develop confidence interval for the population proportion

The survey reported that 31% of the respondents feel they have to save more for retirement to make up for what they lost. Develop a 95% confidence interval for the population proportion.

  What is the coefficient of coincidence

strain of flies carrying the dominant eye mutation Lobe on the second chromosome was crossed with a strain homozygous for the second chromosome recessive mutations smooth abdomen and straw body.

  What would be the rise in temperature

if you used 8900 kilojoules you expend in energy in one day to heat 49000g of water at 19 C what would be the rise in temperature.

  Description of reorder point

If standard deviation is 10 units per week, lead time is 2 weeks, demand is 50 per week, lot size is lot - for - lot, and desired service level is 97.72%, what is the statistical reorder point?

  Describe situations where osha would be able to enter

Discuss and explain situations where OSHA would be able to enter and inspect a worksite without obtaining a warrant or the employer's express consent.

  What is the molar mass of the gas

An experiment shows that a 112-mL gas sample has a mass of 0.120 g at a pressure of 733 mmHg and a temperature of 33.0°C.

  How specifically, could disintegrin-containing toxins cause

Some snake venom toxins contain proteins with RGD sequences that interfere with integrin functions; they are therefore called disintegrins. Give this fact, how specifically, could disintegrin-containing toxins cause or promote injury within human ..

  Probabilty that airline not have seats for all ticket holder

Suppose that for a particular flight involving a jumbo-jet with 265 seats, the airline sells 278 tickets. What is the probability that the airline will not have enough seats for all the ticket holders who show for the flight?

  What minimum mass of succimer is needed

What minimum mass of succimer (C4H6O4S2) (in mg) is needed to bind all of the lead in a patient's bloodstream? Assume that patient blood lead levels are 25 micrograms/deciliter.

  Adjusted trial balance and ledger balance

What is the relationship, if any, between the amount shown in the adjusted trial balance column for an account and that account's ledger balance?


Write a Review


Similar Q& A

  Constructively received income

Which of the following would be considered "constuctively received?"

  Record the transactions on page 8 of a general journal

Record the transactions on page 8 of a general journal. You can Omit descriptions. You can use any General Journal template or the one attached.

  Marital systems of a country

Briefly discuss the economic, political, educational, family, and marital systems of a country of your choice. When doing business in the chosen country, what kind of social hierarchies and social interactions should you be aware of?

  Advanced accounting gaap case study

Case Study Question: As a reviewer of BC Securities Commission, you're in the procedure of reviewing the financial statements of public companies.

  Weighted average costs of capital of china corporation

China Corp. has a current capital structure of $18 million in secured bonds paying 6.5% annual interest, $8 million in preferred stock with a par value of $50 per share and an annual dividend of $3.80 per share

  Profit equation of hockory cabinet and furniture company

The hockory Cabinet and furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cot per chair is $40. Price is related to demand according to the following linear equation.

  Analyse a set of financial statements

PM 106:  Learning outcomes to be examined in this assessment: Analyse a set of financial statements including Income Statement, Statement of Financial Position and Statement cash flows.

  Traditional overhead allocation

List and describe four potential problems with a "traditional" overhead allocation system. List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.

  Question on exchange rate risk

Assume you own portfolio of British securities valued at $430,000. The exchange rate is currently at $1 = £0.57. A currency contract on British pounds is set at 62,500 pounds.

  Journal entry of building purchase-magazine subscription

A company buys a building with an appraised value of $100,000 for $30,000 cash and the assumption of a 25 year, 10% mortgage with a balance of $60,000

  Importance of evidence

What do you consider to be the most important thing for a forensic accountant to remember about evidence? Why?

  Differences between probability and non-probability sample

Discuss the differences between a probability and a non-probability sample. Under what circumstances would each be used?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd