i need help on this

You recently opened your checking account with ReallyBigBank on

August 1 using $100.00.

Complete the checkbook register using the following transactions then explain how you

completed the first four transactions.

August 1 – Opened the checking account with $100.00

August 2 – Purchased groceries from Grocer’s Haven for $43.82 plus 4% tax. (Check 101)

August 2 – Paid $8.00 for parking using your debit card.

August 4 – Deposited paycheck from work. ($9.75/ hr for 40 hours)

August 6 – Paid HydroPower $35.11. (Check 102)

August 6 – Bought 3 pairs of pants at $29.99 each with a 10% coupon and 5% sales tax from

Bargains-R-Us. (Check 103)

August 7 – Bought a bike for $180.00, helmet for $14.95, and gloves for $8.95 from Wheels-2-

Go. Used a 15% off coupon and there was 4% sales tax. (Check 104)

August 11 – Deposited paycheck from work less $100.00 ($9.75/hr for 40 hours)

August 11 – Opened a savings account with $100.00 transferred from the checking account.

(Note: This is an additional $100.00, not the $100.00 you just took out of your paycheck)

August 12 – Ate lunch at Hamburger Mayvn for $5.65 plus 5% tax. Used your debit card to pay

for it.

A debit card withdrawal is the same as a check withdrawal as far as the bank balance is concerned. The difference in the check register is that there is no check number (and is often no transaction number) associated with the debit card withdrawal.

1st transaction

The account is opened with $100. That amount becomes the initial balance.

2nd transaction

This problem requires you figure the tax on the purchases. Ordinarily, the store would do that for you, and you would write a check for the amount owed. Here, the amount owed is ...

$43.82 × 1.04 = 45.5728 ⇒ rounds to 45.57

It is convenient to use a multiplier so the amount with tax can be figured in one calculation, rather than figuring the tax separately and adding that to the original amount. You should realize that 100% + 4% of the purchase amount is 104% of it, or 1.04 times the amount.

Since this $45.57 is a withdrawal, that amount is subtracted from the $100 balance from the previous transaction to give a new balance of $54.43.

3rd transaction

This is a straight withdrawal, so the amount is subtracted from the previous balance to give $46.43.

As noted above, there is no transaction number associated with this. If you have multiple debit cards making withdrawals from the account, it can be occasionally useful to note which one it is. On my bank statement, transactions are identified by the last 4 digits of the card number.

4th transaction

This problem requires you figure the payroll deposit amount. Ordinarily, your employer would do that for you, along with any deductions for taxes, insurance, union dues, or employee purchases. Here, the amount deposited is ...

hours × hourly rate = (40)($9.75) = $390.00

This deposit is added to the previous balance to give a new balance of $436.43.

_____

Transactions with coupons are generally figured by applying the coupon before the tax is computed. It should be no mystery that the purchase amounts are added together. (You can use repeated addition or multiplication, either one, to figure the total when there are several at the same price. Most find multiplication is easier.)

The bike store purchase is perhaps the most complicated. The sum of the marked values is ...

$180.00 + 14.95 + 8.95 = 203.90

The 15% discount is then ...

0.15 × $203.90 = 30.585 ⇒ rounds to 30.59

Subtracting this from the previous sum* gives (before tax) ...

$203.90 -30.59 = $173.31

Then the amount with tax can be figured using the same sort of multiplier discussed above:

amount with tax = $173.31 × 1.04 = $180.2424 ⇒ rounds to $180.24

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* Comment on 15% discount

You can figure the discount using a multiplier, just as we do with added tax:

100% - 15% = 85% . . . 0.85 times the amount

Using this multiplier on 203.90 gives 173.315, which would ordinarily be rounded up to 173.32. However, this number comes from a discount that ends in a half cent (30.585). If you round up the discount, it is equivalent to rounding down the discounted amount 173.315 to 173.31. That's a little subtlety associated with using a multiplier for discounts.