Century 21 Accounting General Journal
11th Edition
ISBN: 9781337680059
Author: Gilbertson
Publisher: Cengage
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Anthony Clement is applying for a car loan. The lending institution requires a personal net worth statement. Anthony currently has $1,085.00 in cash, and his camera is worth $635.00. He also owes Vista Travel $305.00 and Kelley Electronics $83.00. Complete a net worth statement for Anthony Clement. Select Current Date in the appropriate field. Assets should be listed in order of liquidity, so Cash should be listed first. Liabilities should be reported in alphabetic order.
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…
Jack Allen, a graduate in childcare services, wants to open a daycare under the name Little Wolves.
Here are the transactions relating to his company until September 18, 2018:
Sept 01: Jack personally borrows $15,000 from his mother and deposits this sum at Banque Boréale in an account established in the name of Little Wolves.
Sept 01: Purchase on credit of a set of children's toys from Toys Games Inc. for the sum of $3,000 (invoice no. 2715).
Sept 06: Bank loan of $9,000 from Banque Boréale on behalf of Little Wolves.
Sept 08: Issuance of check no. 1 for $1,000 & Toys games Inc., in partial payment of invoice no. 2715 of September 1, 2018.
Sept 10: Cash purchase (check No. 2) of desks and chairs for a total of $4,500. The actual value of the furnishings is $7,500.
Sept 12: Purchase of swings on credit: $1,000.
Sept 14: Purchase by check (No. 3) of educational games: $2,000.
Sept 16: Electronic transfer of $300 made to repay part of the bank loan (line of credit).
Sept 18:…
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- Linda started the business of buying and selling toys in Oxford on the 1st of October 2020. Sheis preparing accounts to 31st October 2020. She contributed to the business with £8,000 inthe Bank, £5200 cash, and 3,000 Van. The transactions during the month are as follows:2/10 Bought a new Laptop £1000 from a local shop in Oxford and paid by cheque4/10 Purchased toys (goods) £2450 on credit from Toys Ltd5/10 Sold goods for £ 1500 and received the money in Bank12/10 Paid in Cash £80 for repairing laptop18/10 Goods returned to Toys Ltd £10021/10 Received rent for part of the premises by cheque £50023/10 Sold goods to Fred £1900; from this amount £1500 cash received immediately and therest remains on credit.23/10 Sold goods of £500 to David and received cash24/10 Bought a second-hand car from Oxford motor vehicle auction for business use byissuing a cheque £250026/10 Paid the month’s wages to the part-time shopkeeper by cheque £82030/10 Paid rent by cheque £100031/10 Linda has also paid…arrow_forwardLinda started the business of buying and selling toys in Oxford on the 1st of October 2020. Sheis preparing accounts to 31st October 2020. She contributed to the business with £8,000 inthe Bank, £5200 cash, and 3,000 Van. The transactions during the month are as follows:2/10 Bought a new Laptop £1000 from a local shop in Oxford and paid by cheque4/10 Purchased toys (goods) £2450 on credit from Toys Ltd5/10 Sold goods for £ 1500 and received the money in Bank12/10 Paid in Cash £80 for repairing laptop18/10 Goods returned to Toys Ltd £10021/10 Received rent for part of the premises by cheque £50023/10 Sold goods to Fred £1900; from this amount £1500 cash received immediately and therest remains on credit.23/10 Sold goods of £500 to David and received cash24/10 Bought a second-hand car from Oxford motor vehicle auction for business use byissuing a cheque £250026/10 Paid the month’s wages to the part-time shopkeeper by cheque £82030/10 Paid rent by cheque £100031/10 Linda has also paid…arrow_forwardDelia Alvarez, owner of Delias Lawn Service, wants to borrow money to buy new lawn equipment. A local bank has asked for financial statements. Alvarez has asked you to prepare financial statements for the year ended December 31, 20--. You have been given the unadjusted trial balance on page 175 and suspect that Alvarez expects you to base your statements on this information. You are concerned, however, that some of the account balances may need to be adjusted. Write a memo to Alvarez explaining what additional information you need before you can prepare the financial statements. Alvarez is not familiar with accounting issues. Therefore, explain in your memo why you need this information, the potential impact of this information on the financial statements, and the importance of making these adjustments before approaching the bank for a loan.arrow_forward
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