Suppose your business has secured a line of credit and receives the accompanying statement of account for the month ofMarch. The limit on your line of credit is $1000.00. You receive daily interest of 1.1% p.a. on positive balances and pay dailyinterest of 6% p.a. on negative (line of credit) balances. Overdraft interest is 19% p.a. on the daily amount exceeding your line ofcredit limit. There is a service charge of $5.00 for each transaction causing an overdraft or adding to an overdraft. Use thisinformation to complete parts (a) through (e) below.E Click the icon to view the statement for the month of March. (a) Calculate the amount of interest earned.Total interest earned = $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)March Statement(b) Calculate the amount of interest charged on the line of credit.Total line of credit interest charged = sTransactionDepositWithdrawalBalanceDateDescription(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)March 3Balance- 738.78(c) Calculate the amount of interest charged on overdrafts.- 1189.78Cheque 263Cheque 264Deposit9451.00- 1439.78740.2215250.00Overdraft interest = Ss2180.0020(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)25Cheque 265119.00621.22(d) Calculate the amount of service charge.27Cheque 266248.00373.2231Service charge = $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)(e) What is the account balance on March 31?PrintDoneThe account balance on March 31 is dollars.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Note: As per our guidelines, only the first three subparts have been answered Interest…

Answered: Suppose your business has secured a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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