Consider the information below for an individual: Home valued at $250,000 . Mortgage balance of $150,000 Auto worth $25,000 $15,000 auto loan. . New household furnishings valued at $5,000 . . $4.500 loan for furniture Retirement account of $45,000 . $1,500 in emergency savings $500 in checking $1500 in a CD . $15,000 credit cards balances . $500 per month for student loans; current balance is $25,000 . $100 per month gym membership Using the information above, respond to all of the following: 1. Determine this individual's net worth. Explain. 2. Identify any expenses that are not liabilities. 3. Assume this individual decides to create a budget. What are the two components of a budget? . I

Consider the information below for an individual: Home valued at $250,000 . Mortgage balance of $150,000 Auto worth $25,000 $15,000 auto loan. . New household furnishings valued at $5,000 . . $4.500 loan for furniture Retirement account of $45,000 . $1,500 in emergency savings $500 in checking $1500 in a CD . $15,000 credit cards balances . $500 per month for student loans; current balance is $25,000 . $100 per month gym membership Using the information above, respond to all of the following: 1. Determine this individual's net worth. Explain. 2. Identify any expenses that are not liabilities. 3. Assume this individual decides to create a budget. What are the two components of a budget? . I

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4MC: A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and...

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Home valued at $250,000 Mortgage balance of $150,000 Auto worth $25,000 $15,000 auto loan New household furnishings valued at $5,000 $4.500 loan for furniture Retirement account of $45,000 $1,500 in emergency savings $500 in checking $1500 in a CD $15,000 credit cards balances $500 per month for student loans; current balance is $25,000 $100 per month gym membership Using the information above, respond to all of the following: Determine this individual's net worth. Explain. Identify any expenses that are not liabilities. Assume this individual decides to create a budget. What are the two components of a budget? Assume this individual's friend decides to pursue postsecondary education. What are two types of financial aid that the friend could apply for that do not have to be repaid?
Samantha Knight is applying for a small-business loan. She provides thebank with the following information: cash in checking accounts, $5,000;cash in savings, $10,350; home market value, $145,500; first mortgageon house, $25,000; home equity loan limit, $70,000; home equity loan,$10,000; automobile market value, $19,000; automobile loan outstanding,$15,000; credit card debt, $1,500.a. Calculate the debt-to-asset ratio.b. Calculate the debt-to-equity ratio.c. What percentage of Samantha’s assets are owned by others?
Home valued at $250,000 Mortgage balance of $150,000 Auto worth $25,000 $15,000 auto loan New household furnishings valued at $5,000 $4.500 loan for furniture Retirement account of $45,000 $1,500 in emergency savings $500 in checking $1500 in a CD $15,000 credit cards balances $500 per month for student loans; current balance is $25,000 $100 per month gym membership Determine this individual's net worth. Explain. Identify any expenses that are not liabilities.
Simone Smith, Trading as Scents of Jamaica, is applying for a small business loan. She provides the bank with the following information: cash in checking account $5000, short-term investment $10,350, real estate with market value of 115,500, inventories 30,000, first mortgage on real estate 25000, home equity loan limit 70000, balance on home equity loan 10,000, value of home 200,000, automobile with market value of 19,000, automobile loan outstanding 15,000, credit card debt 1500. (A) using the information provided, construct a statement of Affairs [personal balance sheet] for Simon Smith, trading as Scents of Jamaica. The statement should be arranged to show the assets and liabilities in their various categories, for example current assets being a category. (B) The bank’s policy says that a debit ratio of 20% or less is acceptable for a small business loans . Using the debt ratio as the sole criterion , would you make a loan of (100000)hundred thousand dollars to Scents of…
Based on the following information: Loan balance 250.00 Mortgage payment 893.00 Current value of auto 6,300 Food expenses 425.00 Saving account amount 2,100 Loan payment on stereo 75.00 Monthly take-home salary 2,750 after taxes so this is your net/ not gross Household possessions value 4,100 Balance on student loan 61,000 Electric bill paid for month 235.00 Credit card balance 280.00 Auto insurance payment 401.00 Phone payment 72.00 Cash on hand 700.00 Parking at work 80.00 Charity giving 200.00 Computer value 2,900 Jewelry value 3,800 Market value of home 114,000 Government bonds you own 500.00 Cloths bought this month 475.00 Entertainment 120.00 Credit card payment 33.00 Car loan balance 2,200 Car payment 170.00 Calculate the following… Assets Liabilities Net Worth Income Expenses Surplus/deficit
Show the following transactions for a household on a double-entry bookkeeping ledger (values are expressed in the same given unit of account): Household earns a salary paid in a checking account (value=100). Household makes consumption expenses (value=80). Household buys a property (value=15,000) with a down payment of 10,000 and a loan of 5,000. ENTRY DEBIT CREDIT Salary Deposits Consumption expenses Deposits Loan Deposits Property Deposits
Mr. Sojo opened up a merchandising business on October 1, 2019 with a cash investment of P50,000. The following activities were given: Cash received from customers 205,000.00 Cash borrowed from the bank 150,000.00 Utilities, salaries, supplies and rent paid 115,000.00 Cash paid to the bank 50,000.00 Cash purchase for equipment 100,000.00 Cash purchase for furniture 25,000.00 Equipment bought on credit 150,000.00 Additional investment 200,000.00 Withdrawal 40,000.00 Additional information;1. Supplies amounted to 20% of the…
What is the journal entry for this transaction: Jethro bought an SUV at a value of $50,000 for his business, paid 11% down payment, and finances the remainder with a note. Debit SUV, $50,000, credit cash $5,500, credit accounts payable $44,500 Debit SUV, $50,000, credit cash $5,500, credit accounts receivable $44,500 Debit SUV, $50,000, credit cash $5,500, credit notes payable $44,500 Debit SUV, $50,000, credit cash $50,000
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $20,000 and has cash on hand of $29,000 contributed by Lanni’s owners. Lanni takes out a bank loan. It receives $31,000 in cash and signs a note promising to pay back the loan over 3 years. a. Prepare the balance sheet just after it gets the bank loan. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) ASSETS Liabilities & shareholders' equity CASH: bank loan : computers : shareholder's equity : total: total : ratio b. Prepare the balance sheet after Lanni spends the $60,000 to develop its software product. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) ASSETS Liabilities & shareholders' equity software product: bank loan : computers : shareholder's equity : total: total : ratio c. Lanni sells the software product to Microsoft, which will market it to…
Mr J Mwero, a wholesale merchant had the following balances in his ledger at 1 March 2019.Cash in hand Sh.3,000; Bank overdraft Sh.7,000; Motor vans Sh.56,000; Furniture and Equipment Sh.11,900; Creditor (R. Osoro) Sh.4,800; Debtor (B. Anyumba) Sh.3,000; Capital Sh.20,000; Loan from Kokise Investment Ltd. Sh. 42,100. At the end of the month, Mr. J Mwero was able to provide the following information from his records: Cash Transactions: I) Receipts - March 7: Cash Sales - Sh.1,200 “ 26: Cash from bank - Sh.3,500 ii) Payments - March 10: Electricity - Shs.200 “ 14: Salaries - Sh.1,800 “ 25: Postage and Stationery - Sh.960 Bank Transactions: i) Receipts - March 17: B. Anyumba - Sh.48,000 ii) Payment - March 20: R. Osoro - Sh. 20,600 in full Settlement less Sh.200 cash discount March 27: Kokise Investment Ltd. - Shs.2,100 Other Transactions: March 5:Purchase goods - Sh.16,000 from R OsoroMarch 11: Sold goods to B…
Mr J Mwero, a wholesale merchant had the following balances in his ledger at 1 March 2019.Cash in hand Sh.3,000; Bank overdraft Sh.7,000; Motor vans Sh.56,000; Furniture and Equipment Sh.11,900; Creditor (R. Osoro) Sh.4,800; Debtor (B. Anyumba) Sh.3,000; Capital Sh.20,000; Loan from Kokise Investment Ltd. Sh. 42,100. At the end of the month, Mr. J Mwero was able to provide the following information from his records: Cash Transactions: I) Receipts - March 7: Cash Sales - Sh.1,200 “ 26: Cash from bank - Sh.3,500 ii) Payments - March 10: Electricity - Shs.200 “ 14: Salaries - Sh.1,800 “ 25: Postage and Stationery - Sh.960 Bank Transactions: i) Receipts - March 17: B. Anyumba - Sh.48,000 ii) Payment - March 20: R. Osoro - Sh. 20,600 in full Settlement less Sh.200 cash discount March 27: Kokise Investment Ltd. - Shs.2,100 Other Transactions: March 5:Purchase goods - Sh.16,000 from R OsoroMarch 11: Sold goods to B…
Mr J Mwero, a wholesale merchant had the following balances in his ledger at 1 March 2019. Cash in hand Sh.3,000; Bank overdraft Sh.7,000; Motor vans Sh.56,000; Furniture and Equipment Sh.11,900; Creditor (R. Osoro) Sh.4,800; Debtor (B. Anyumba) Sh.3,000; Capital Sh.20,000; Loan from Kokise Investment Ltd. Sh. 42,100. At the end of the month, Mr. J Mwero was able to provide the following information from his records: Cash Transactions: I) Receipts - March 7: Cash Sales - Sh.1,200 “ 26: Cash from bank - Sh.3,500 ii) Payments - March 10: Electricity - Shs.200 “ 14: Salaries - Sh.1,800 “ 25: Postage and Stationery - Sh.960 Bank Transactions: i) Receipts - March 17: B. Anyumba - Sh.48,000 ii) Payment - March 20: R. Osoro…