Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions:
| Transaction | Debit ($) | Credit ($) |
| :---------------------- | :-------- | :--------- |
| Birthday check | -- | 75.00 |
| Night out | 66.14 | - |
| Garage sale proceeds | - | 121.58 |
| Charitable donation | 42.25 | - |
| Doctor's appointment | 115.30 | -- |
At the end of the week, how much money is in Danielle's account?
A. $99.91
B. $27.11
C. $184.41
D. $142.16
Answer (1)
Calculate total debits: 66.14 + 42.25 + 115.30 = 223.69 .
Calculate total credits: 75.00 + 121.58 = 196.58 .
Calculate net change: 196.58 − 223.69 = − 27.11 .
Calculate final balance: 127.02 + ( − 27.11 ) = 99.91 . The final balance is $99.91 .
Explanation
Problem Analysis We are given Danielle's initial account balance and a list of transactions (debits and credits) over a week. We need to calculate her final account balance at the end of the week.
Calculating Total Debits First, let's calculate the total debits (money going out of the account). The debits are: Night out ($66.14), Charitable donation ($42.25), and Doctor's appointment ($115.30). So, the total debits are: 66.14 + 42.25 + 115.30 = 223.69 Thus, the total debits are $223.69.
Calculating Total Credits Next, let's calculate the total credits (money coming into the account). The credits are: Birthday check ($75.00) and Garage sale proceeds ($121.58). So, the total credits are: 75.00 + 121.58 = 196.58 Thus, the total credits are $196.58.
Calculating Net Change Now, let's calculate the net change in the account balance. This is the total credits minus the total debits: 196.58 − 223.69 = − 27.11 The net change is -$27.11, meaning Danielle spent more than she deposited.
Calculating Final Balance Finally, let's calculate the final account balance. This is the initial balance plus the net change: 127.02 + ( − 27.11 ) = 99.91 Therefore, the final balance in Danielle's account is $99.91.
Examples
Understanding how to track debits and credits and calculate balances is essential for managing personal finances. For example, if you're budgeting for a trip, you can track your income (credits) and expenses (debits) to ensure you stay within your budget. Similarly, businesses use these calculations to manage their cash flow and ensure profitability. By carefully monitoring transactions, you can make informed financial decisions and avoid overspending.
