Century 21 Accounting: General Journal, Copyright Update (Century 21 Accounting Series)
10th Edition
ISBN: 9781305947771
Author: Claudia Bienias Gilbertson, Mark W. Lehman, Debra Gentene
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
June Peters deposits $6400 in a savings account at her bank. When she withdraws the money 8 months later, she receives a check for $6453.33. Assume simple interest and find the rate of interest paid by the bank.
Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show they are at their credit card limit of $500 this month. Samantha manages her credit well and ensures that her credit card balance is paid off in full each month before the payment deadline while Samuel cannot manage to pay off the minimum amount required each month. Complete the sentence: For Financial Statement reporting purposes, __________________________________________.
a) It does not matter where Samantha or Samuel report the$500 as long as it is shown on one of their Financial Statements.
b) Both Samantha and Samuel would report their $500 on their Balance Sheet as a current liability.
c) Both Samantha and Samuel would report their $500 on their Cash Flow statement as an expense.
d) Samantha would report her $500 on her Cash Flow statement as an expense while Samuel would report his credit card debt of $500 on his Balance Sheet as a current liability.
e) Samantha would report her…
John rey combong is considering a loan to finance her college education. He currently owes money on several charge accounts and credit cards. What actions would you recommend?
Knowledge Booster
Similar questions
- Lizzie Gunderson is trying to establish a credit history and applied for a Visa credit card. She paid the previous month's statement balance in full. The card carries a finance charge rate of 16%. What is the amount of finance charge if Lizzie pays off the current $168.20 monthly statement balance in full?arrow_forwardCamila Martinez has several credit cards, on which she is carrying a total current balance of $6,500. She is considering transferring this balance to a new card issued by a local bank. The bank advertises that, for a 4 percent fee, she can transfer her balance to a card that charges a 0 percent interest rate on transferred balances for the first 6 months. Calculate the fee that Camila would pay to transfer the balance. $  Describe the benefits and drawbacks of balance transfer cards.arrow_forwardEvaluating debt safety ratio. Use Worksheet 6.1. Chloe Young is evaluating her debt safety ratio. Her monthly take- home pay is $3,320. Each month, she pays $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Chloe’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debt payments that Chloe can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Chloe’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?arrow_forward
- ) Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show they are at their credit card limit of $500 this month. Samantha manages her credit well and ensures that her credit card balance is paid off in full each month before the payment deadline while Samuel cannot manage to pay off the minimum amount required each month. Complete the senterice: For Financial Statement reporting purposes, a) It does not matter where Samantha or Samuel report the $500 as long as it is shown on one of their Financial Statements. b) Both Samantha and Samuel would report their $500 on their Balance Sheet as a current liability. c) Both Samantha and Samuel would report their $500 on their Cash Flow statement as an expense. d) Samantha would report her $500 on her Cash Flow statement as an expense while Samuel would report his credit card debt of 5500 on his Balance Sheet as a current liability. e) Samantha would report her $500 on her Balance Sheet as a…arrow_forwardKatherine Hunt is evaluating her debt safety ratio. Her monthly take-home pay is $3,160. Each month, she pays $350 for an auto loan, $90 on a personal line of credit, $80 on a department store charge card, and $105 on her bank credit card. Complete Worksheet 6.1 by listing Katherine's outstanding debts, and then calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. % Given her current take-home pay, what is the maximum amount of monthly debt payments that Katherine can have if she wants her debt safety ratio to be 12.5 percent? Round the answer to the nearest dollar. $  Given her current monthly debt payment load, what would Katherine's take-home pay have to be if she wanted a 12.5 percent debt safety ratio? Round the answer to the nearest dollar. $arrow_forwardJamie Lee wants to determine if she can afford the monthly payments for all of her purchases before she completes the applica process. Use the information below to determine her debt payment-to-income ratio. Current Financial Situation Assets: Income: Checking account $1,900 Savings account $7,400 Gross monthly salary Net income $2,850 $2,195 Emergency fund savings account $2,900 Monthly Expenses: IRA balance $430 Rent obligation $370 Car $3,000 Utilities/Electric $80 Liabilities: Utilities/Water $50 Student loan $11,000 Utilities/Cable $75 (Jamie is still a full-time student, so Food $135 no payments are required on the loan Gas/Maintenance $140 until after graduation) Credit card payment $0 Acme Home Goods (Washer/dryer $1,650 Acme Home Goods $41 and refrigerator) Local Home Furnishings (Sofa $1,750 Local Home Furnishings $46 set) Big Box Store (52" LED HDTV) $1,150 Big Box Store $29 Automobile, Education, Personal, and Installment Loans Financial Institution or Account Number…arrow_forward
- Refer to the previous question. Suppose you later received a letter in the mail with a $100 check in it from Daniel Delinkquint, together with a note describing how he had become a born-again Christian (much like Zacchaeus) and had determined to pay off all his debts (albeit not four-fold like Zacchaeus). Give the appropriate general journal entry(ies), if any, to reflect this payment from Daniel. Write “none” if no entry is required. Previous Question: Daniel Delinkquint owes your business $100 on account. He has moved and you have no idea how to contact him. You feel that perhaps the $100 he owes is not worth the time and effort to try to locate him. Furthermore, even if you did locate him, he probably would not pay the balance because he disputed it the last time your talked with him. An allowance has been made for this account in the past in accordance with GAAP. Give the appropriate general journal entry(ies), if any, to reflect your decision to not pursue collection from Daniel…arrow_forwardChristopher just received his checking account statement from his bank. He has a NOW account with free checking that pays 0.75% APR on the balance and requires a $500 minimum balance. His statement shows that he currently has a balance of $3,950. In looking at his statement he notices that his car payment check for $400 is still outstanding, and that his recently received payroll deposit of $3,600 had not posted at the time the statement was created. His normal living expenses average $1,500 per month including his car payment. Other than his car loan, he rarely writes any checks as he prefers to use his debit card and ATM card for day-to-day living expenses. He pays his credit card balance in full every month. Other than his checking account he does not own any investments. He has always dreamed of owning a house, and would like to buy one within the next five years. He has access to a 401(k) pension plan at work where his employer will match contributions up to 6% of his salary. He…arrow_forwardChristopher just received his checking account statement from his bank. He has a NOW account with free checking that pays 0.75% APR on the balance and requires a $500 minimum balance. His statement shows that he currently has a balance of $3,950. In looking at his statement he notices that his car payment check for $400 is still outstanding, and that his recently received payroll deposit of $3,600 had not posted at the time the statement was created. His normal living expenses average $1,500 per month including his car payment. Other than his car loan, he rarely writes any checks as he prefers to use his debit card and ATM card for day-to-day living expenses. He pays his credit card balance in full every month. Other than his checking account he does not own any investments. He has always dreamed of owning a house, and would like to buy one within the next five years. He has access to a 401(k) pension plan at work where his employer will match contributions up to 6% of his salary. He…arrow_forward
- Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The A.P.R. on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year? She would have paid interest charges of $2,000. She would have paid interest charges of $20. The credit card company would have paid Louisa $20. She would have paid interest charges of $200.arrow_forwardHanna works as a teller a bank. One of Hanna's clients, an out of province student, started to consistently deposit large amounts of cash in the form of $5, $10, and $20 Bills. Hanna asked her client the source of these funds. The client said, it is from her parents. Should Hanna report this transaction? If you select A, What are the penalties for not reporting this transaction?arrow_forwardSamantha Knight is applying for a small-business loan. She provides thebank with the following information: cash in checking accounts, $5,000;cash in savings, $10,350; home market value, $145,500; first mortgageon house, $25,000; home equity loan limit, $70,000; home equity loan,$10,000; automobile market value, $19,000; automobile loan outstanding,$15,000; credit card debt, $1,500.a. Calculate the debt-to-asset ratio.b. Calculate the debt-to-equity ratio.c. What percentage of Samantha’s assets are owned by others?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage