PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
6th Edition
ISBN: 9781337118026
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 2, Problem 3FPE
Summary Introduction
To prepare: The income and expenses statement of person R and person M for the year ending December 31, 2017.
A personal
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Preparing Income and Expense
Statement: Sara and Rahim are about to construct their income
and expense statement for the year ending August 31, 2020.
They have put together the following income and expense
information for 2020:
RAHIM's salary
Sara's Salary
OMR. 5200
OMR. 4000
Rent received
OMR. 2000
Interest on:
Fixed account
300
Bonds of Sama Corporation
500
Groceries
600
Rent paid
Utilities
Gas and auto expenses
KIDS tuition, books, and supplies
Books, magazines, and periodicals
Clothing and other miscellaneous expenses
Rahim's travel expenses
Purchase of a used car (cost)
Outstanding loan balance on car
Purchase of bonds in Sama Corporation
Using the information provided, prepare an income and expense
statement for Sara and Rahim for the year ending August 31,
500
80
20
500
40
1600
400
6560
2780
678
2020
Hugo Garcia is preparing his balance sheet and income and expense statementfor the year ending December 31, 2020. He is having difficulty classifying six items and sks for your help. Which,if any, of the following transactions are assets, liabilities, income, or expense items?a. Hugo rents a house for $1,350 a month.b. On June 21, 2020 Hugo bought diamond earrings for his wife and charged them using his Visa card. The earringscost $900, but he hasn’t yet received the bill.c. Hugo borrowed $3,500 from his parents last fall, but so far, he has made no payments to them.d. Hugo makes monthly payments of $225 on an installment loan; about half of it is interest, and the balance isrepayment of principal. He has 20 payments left, totaling $4,500.e. Hugo paid $3,800 in taxes during the year and is due a tax refund of $650, which he hasn’t yet received.f. Hugo invested $2,300 in a mutual fund.g. Hugo’s Aunt Lydia gave him a birthday gift of $300.
Andrew and Rachel occasionally use an online rental platform to advertise and rent their personal residence when they travel out of town. they rented their home for a total of twelve days during the year. how do Andrew and Rachel report this rental income and any allocable expenses on their tax return
Chapter 2 Solutions
PFIN Online, 1 term (6 months) Printed Access Card for Billingsley/Gitman/Joehnk's PFIN 6
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