Century 21 Accounting Multicolumn Journal
11th Edition
ISBN: 9781337679503
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…
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
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