Century 21 Accounting Multicolumn Journal
11th Edition
ISBN: 9781337679503
Author: Gilbertson
Publisher: Cengage
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Abdul has a debit card linked to a checking account with an available balance of $1480.
He also owes $1030 on his credit card, which has a credit limit of $2400.
Use this information to answer the questions below.
(a) Abdul is going to purchase an item with his debit card.
What is the most he can spend?
$0
(b) Abdul is going to purchase an item with his credit card.
What is the most he can spend?
$
(c) Suppose an item costs $1400. Which card can be used for the entire purchase?
Select all that apply. If neither card can be used, check "Neither".
Debit card
n Credit card
n Neither
X
Ś
Travel Planners, Incorporated borrowed $5,000 from First State Bank and signed a promissory note. What entry should Travel Planners record when the note is repaid?
Jamie 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…
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Similar questions
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- S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3 He purchases shop fittings for sh. 2,500 and pays by cheque. July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6 He buys stock for Sh. 1,500 and pays through bank. July 8 He sells goods for cash Sh.1,000. July 10 Buys goods on credit from XY & Co. for Sh. 1,200 July 12 Sells goods to A. Smith for Sh. 900 on credit July 13 Pays wages Sh. 120 by cash July 14 A. Smith returns goods worth Sh. 200 July 15 Pays to AB & Co. Sh. 3,000 by cheque July 17 Goods returned to XY & Co. amounting to Sh. 350 July 21 Receives from A. Smith a cheque for Sh. 700 July 25 Sells goods for cash Sh. 300. July 30…arrow_forwardS. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3 He purchases shop fittings for sh. 2,500 and pays by cheque. July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6 He buys stock for Sh. 1,500 and pays through bank. July 8 He sells goods for cash Sh.1,000. July 10 Buys goods on credit from XY & Co. for Sh. 1,200 July 12 Sells goods to A. Smith for Sh. 900 on credit July 13 Pays wages Sh. 120 by cash July 14 A. Smith returns goods worth Sh. 200 July 15 Pays to AB & Co. Sh. 3,000 by cheque July 17 Goods returned to XY & Co. amounting to Sh. 350 July 21 Receives from A. Smith a cheque for Sh. 700 July 25 Sells goods for cash Sh. 300. July 30…arrow_forwardLizzie 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_forward
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