Round All Answers to the Nearest Cent

question 19

Essay

Round all answers to the nearest cent. Woody's Café's real estate tax of $1,110.85 was due on November 1, 2014. Due to financial problems, Woody was unable to pay his café's real estate tax bill until January 15, 2015. The penalty for late payment is 8 1/4% ordinary interest. (A) What is the penalty Woody will have to pay and (B) what will Woody pay on January 15?
A. $19.09
B. $1,129.94

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Definitions:

Historical Cost Principle

An accounting principle that states that assets should be recorded and reported at their original purchase cost.

Stock Investments Account

An account on the balance sheet that represents the cost of buying and holding shares of another company.

Brokerage Fees

Charges paid to a broker for executing transactions or providing specialized services.

New York Stock Exchange

A leading global securities exchange where stocks and other securities are bought and sold.