Presented below are two independent situations.

on april 2, jennifer elston uses her jcpenney company credit card to purchase merchandise from a jcpenney store for $1,100. on may 1, elston is billed for the $1,100 amount due. elston pays $600 on the balance due on may 3. on june 1, elston receives a bill for the amount due, including interest at 1.0% per month on the unpaid balance as of may 3. prepare the entries on jcpenney co.’s books related to the transactions that occurred on april 2, may 3, and june 1. (credit account titles are automatically indented when amount is entered. do not indent manually.)

date / account titles and explanation / debit / credit

apr. 2

may 3

june 1

on july 4, spangler’s restaurant accepts a visa card for a $200 dinner bill. visa charges a 2% service fee. prepare the entry on spangler’s books related to this transaction. (credit account titles are automatically indented when amount is entered. do not indent manually.)

date / account titles and explanation / debit /credit

july 4

2. you take $100 you had kept under your mattress and deposit it on your bank account. if this $100 stays in the banking system as reserves and if banks hold reserves equal to 10% of deposits, by how much does the total amount of deposits in the banking system increase? by how much does the money supply increase?

In the fall, jay thompson decided to live in a university dormitory. he signed a dorm contract under which he was obligated to pay the room rent for the full college year. one clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. the dorm cost was $5000 for the two semesters, which jay had already paid a month after he moved into the dorm, he decided he would prefer to live in an apartment. that week, after some searching for a replacement to fulfill his dorm contract, jay had two offers. one student offered to move in immediately and to pay jay $300 per month for the eight remaining months of the school year. a second student offered to move in the second semester and pay $2500 to jay. jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment with three other students. his share of the apartment rent and utilities will be $404 per month. assume each semester is 4.5 months long. disregard the small differences in the timing of the disbursements or receipts. what is the cost of the cheapest alternative?

For each example identify the most appropriate ctso