QuestionSituation \#2:
Use the ledger to record the information and answer the questions.
Note: On May 5, your beginning balance is
1. On May 6, you spent on a gallon of ice cream at Marty's Ice Cream Parlor.
2. On May 7, you spent on crackers, a candy bar, and a coke from Circle H convenience store.
3. On May 8 , you received for cutting the neighbor's grass.
4. On May 8 , you spent on a downloaded book for your Kindle.
\begin{tabular}{|l|c|c|c|c|}
\hline DATE & TRANSACTION & \begin{tabular}{c}
PAYMENT \\
\end{tabular} & \begin{tabular}{c}
DEPOSIT \\
\end{tabular} & BALANCE \\
\hline & & & & \\
\hline & & & & \\
\hline & & & & \\
\hline & & & & \\
\hline
\end{tabular}
A. What is your balance after four transactions?
B. How much money did you deposit (show as a positive value)?
C. How much money did you pay or withdraw (show as a negative value)?
D. Can you really afford to spend on a book for your Kindle? If not, how much money do you need to earn to have an account balance of ?
Studdy Solution
STEP 1
1. The initial balance on May 5 is $8.00.
2. Transactions are recorded in chronological order.
3. Payments are subtracted from the balance, and deposits are added to the balance.
STEP 2
1. Record each transaction in the ledger.
2. Calculate the balance after each transaction.
3. Answer questions A, B, C, and D based on the ledger.
STEP 3
Record the initial balance on May 5.
\begin{tabular}{|l|c|c|c|c|}
\hline
DATE & TRANSACTION & \begin{tabular}{c}
PAYMENT \\
(-)
\end{tabular} & \begin{tabular}{c}
DEPOSIT \\
(+)
\end{tabular} & BALANCE \\
\hline
May 5 & Beginning Balance & & & \$8.00 \\
\hline
\end{tabular}
STEP 4
Record the transaction on May 6.
\begin{tabular}{|l|c|c|c|c|}
\hline
DATE & TRANSACTION & \begin{tabular}{c}
PAYMENT \\
(-)
\end{tabular} & \begin{tabular}{c}
DEPOSIT \\
(+)
\end{tabular} & BALANCE \\
\hline
May 6 & Ice Cream & \$4.38 & & \$3.62 \\
\hline
\end{tabular}
STEP 5
Record the transaction on May 7.
\begin{tabular}{|l|c|c|c|c|}
\hline
DATE & TRANSACTION & \begin{tabular}{c}
PAYMENT \\
(-)
\end{tabular} & \begin{tabular}{c}
DEPOSIT \\
(+)
\end{tabular} & BALANCE \\
\hline
May 7 & Snacks & \$3.37 & & \$0.25 \\
\hline
\end{tabular}
STEP 6
Record the transaction on May 8 (deposit).
\begin{tabular}{|l|c|c|c|c|}
\hline
DATE & TRANSACTION & \begin{tabular}{c}
PAYMENT \\
(-)
\end{tabular} & \begin{tabular}{c}
DEPOSIT \\
(+)
\end{tabular} & BALANCE \\
\hline
May 8 & Grass Cutting & & \$10.00 & \$10.25 \\
\hline
\end{tabular}
STEP 7
Record the transaction on May 8 (payment).
\begin{tabular}{|l|c|c|c|c|}
\hline
DATE & TRANSACTION & \begin{tabular}{c}
PAYMENT \\
(-)
\end{tabular} & \begin{tabular}{c}
DEPOSIT \\
(+)
\end{tabular} & BALANCE \\
\hline
May 8 & Kindle Book & \$14.80 & & -\$4.55 \\
\hline
\end{tabular}
STEP 8
Answer question A: What is your balance after four transactions?
The balance after four transactions is .
STEP 9
Answer question B: How much money did you deposit?
The total deposit is .
STEP 10
Answer question C: How much money did you pay or withdraw?
The total payment is .
STEP 11
Answer question D: Can you really afford to spend \$14.80 on a book for your Kindle? If not, how much money do you need to earn to have an account balance of \$0?
No, you cannot afford it. You need to earn to have a balance of \$0.
The answers are:
A. Balance after four transactions: .
B. Total deposit: .
C. Total payment: .
D. Need to earn: .
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