Deb secured a line of credit for her business and received the following statement of account for the month of February 2021. Date Transaction Deposit Withdrawal Balance Feb 1 Balance -710 Feb 4 Cheque 262 Deposit 590 -1300 Feb 10 1740 440 Feb 16 Cheque 263 Cheque 264 210 230 Feb 20 760 -530 Feb 22 Cheque 265 Cheque 266 80 -610 Feb 27 140 -750 Feb 28 Daily interest of 1.5% p.a. is earned on all positive balances. Daily interest of 7% p.a. is charged on all negative (line of credit) balances. Overdraft interest of 18% p.a. is charged on daily amounts exceeding $1,000. Service charge of $5.00 is charged for each transaction causing an overdraft or adding to an overdraft. 1.) Determine the amount of interest earned. (a positive value) 2.) Determine the amount of interest charged on the line of credit. (a positive value) 3.) Determine the amount of interest charged on overdrafts. (a positive value)

Deb secured a line of credit for her business and received the following statement of account for the month of February 2021. Date Transaction Deposit Withdrawal Balance Feb 1 Balance -710 Feb 4 Cheque 262 Deposit 590 -1300 Feb 10 1740 440 Feb 16 Cheque 263 Cheque 264 210 230 Feb 20 760 -530 Feb 22 Cheque 265 Cheque 266 80 -610 Feb 27 140 -750 Feb 28 Daily interest of 1.5% p.a. is earned on all positive balances. Daily interest of 7% p.a. is charged on all negative (line of credit) balances. Overdraft interest of 18% p.a. is charged on daily amounts exceeding $1,000. Service charge of $5.00 is charged for each transaction causing an overdraft or adding to an overdraft. 1.) Determine the amount of interest earned. (a positive value) 2.) Determine the amount of interest charged on the line of credit. (a positive value) 3.) Determine the amount of interest charged on overdrafts. (a positive value)

Name: Deb secured a line of credit for her business and received the follow
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Description: Deb secured a line of credit for her business and received the following statement of account for the month of February 2021.DateTransactionDepositWithdrawalBalanceFeb 1Balance-710Feb 4Cheque 262590-1300Feb 10Deposit1740440Feb 16Cheque 263210230Feb

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6P

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