B i l l A n t i o j o i s p r e p a r i n g h i s b a l a n c e s h e e t a n d i n c o m e a n d e x p e n s e s s t a t e m e n t f o r t h e y e a r e n d i n g J u n e 3 0 , 2 0 2 2 . H e i s h a v i n g d i f f i c u l t y c l a s s i f y i n g s i x i t e m s a n d a s k s f o r y o u r h e l p . W h i c h , i f a n y , o f t h e f o l l o w i n g t r a n s a c t i o n s a r e a s s e t s , l i a b i l i t i e s , i n c o m e , o r e x p e n s e i t e m s ? B i l l r e n t s a h o u s e f o r ₱ 1 0 , 0 0 0 . 0 0 a m o n t h O n J u n e 2 1 , 2 0 2 2 , B i l l b o u g h t g o l d p i e c e s o f j e w e l r y f o r h i s w i f e a n d c h a r g e d t h e m u s i n g h i s V i s a c a r d . T h e p i e c e s o f j e w e l r y c o s t ₱ 6 0 , 0 0 0 . 0 0 , b u t h e h a s n ’ t r e c e i v e d t h e b i l l . B i l l b o r r o w e d ₱ 2 0 , 0 0 0 . 0 0 f r o m h i s p a r e n t s l a s t y e a r , b u t s o f a r h e h a s m a d e n o p a y m e n t s t o t h e m . B i l l m a k e s m o n t h l y p a y m e n t s o f ₱ 1 2 , 0 0 0 . 0 0 o n a n i n s t a l l m e n t l o a n ; a b o u t h a l f o f i t i s i n t e r e s t , a n d t h e b a l a n c e i s r e p a y m e n t o f p r i n c i p a l . H e h a s 2 0 p a y m e n t s l e f t, t o t a l i n g ₱ 2 4 0 , 0 0 0 . 0 0 . B i l l p a i d ₱ 2 8 , 0 0 0 . 0 0 i n t a x e s d u r i n g t h e y e a r a n d i s d u e a t a x r e f u n d o f ₱ 4 , 5 0 0 . 0 0 , w h i c h h e h a s n ’ t y e t r e c e i v e d . B i l l i n v e s t e d ₱ 1 8 , 0 0 0 . 0 0 i n s o m e c o m m o n s t o c k
B i l l A n t i o j o i s p r e p a r i n g h i s b a l a n c e s h e e t a n d i n c o m e a n d e x p e n s e s s t a t e m e n t f o r t h e y e a r e n d i n g J u n e 3 0 , 2 0 2 2 . H e i s h a v i n g d i f f i c u l t y c l a s s i f y i n g s i x i t e m s a n d a s k s f o r y o u r h e l p . W h i c h , i f a n y , o f t h e f o l l o w i n g t r a n s a c t i o n s a r e a s s e t s , l i a b i l i t i e s , i n c o m e , o r e x p e n s e i t e m s ? B i l l r e n t s a h o u s e f o r ₱ 1 0 , 0 0 0 . 0 0 a m o n t h O n J u n e 2 1 , 2 0 2 2 , B i l l b o u g h t g o l d p i e c e s o f j e w e l r y f o r h i s w i f e a n d c h a r g e d t h e m u s i n g h i s V i s a c a r d . T h e p i e c e s o f j e w e l r y c o s t ₱ 6 0 , 0 0 0 . 0 0 , b u t h e h a s n ’ t r e c e i v e d t h e b i l l . B i l l b o r r o w e d ₱ 2 0 , 0 0 0 . 0 0 f r o m h i s p a r e n t s l a s t y e a r , b u t s o f a r h e h a s m a d e n o p a y m e n t s t o t h e m . B i l l m a k e s m o n t h l y p a y m e n t s o f ₱ 1 2 , 0 0 0 . 0 0 o n a n i n s t a l l m e n t l o a n ; a b o u t h a l f o f i t i s i n t e r e s t , a n d t h e b a l a n c e i s r e p a y m e n t o f p r i n c i p a l . H e h a s 2 0 p a y m e n t s l e f t, t o t a l i n g ₱ 2 4 0 , 0 0 0 . 0 0 . B i l l p a i d ₱ 2 8 , 0 0 0 . 0 0 i n t a x e s d u r i n g t h e y e a r a n d i s d u e a t a x r e f u n d o f ₱ 4 , 5 0 0 . 0 0 , w h i c h h e h a s n ’ t y e t r e c e i v e d . B i l l i n v e s t e d ₱ 1 8 , 0 0 0 . 0 0 i n s o m e c o m m o n s t o c k
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
B i l l A n t i o j o i s p r e p a r i n g h i s b a l a n c e s h e e t a n d i n c o m e a n d e x p e n s e s s t a t e m e n t f o r t h e y e a r e n d i n g J u n e 3 0 , 2 0 2 2 . H e i s h a v i n g d i f f i c u l t y c l a s s i f y i n g s i x i t e m s a n d a s k s f o r y o u r h e l p . W h i c h , i f a n y , o f t h e f o l l o w i n g t r a n s a c t i o n s a r e a s s e t s , l i a b i l i t i e s , i n c o m e , o r e x p e n s e i t e m s ?
- B i l l r e n t s a h o u s e f o r ₱ 1 0 , 0 0 0 . 0 0 a m o n t h
- O n J u n e 2 1 , 2 0 2 2 , B i l l b o u g h t g o l d p i e c e s o f j e w e l r y f o r h i s w i f e a n d c h a r g e d t h e m u s i n g h i s V i s a c a r d . T h e p i e c e s o f j e w e l r y c o s t ₱ 6 0 , 0 0 0 . 0 0 , b u t h e h a s n ’ t r e c e i v e d t h e b i l l .
- B i l l b o r r o w e d ₱ 2 0 , 0 0 0 . 0 0 f r o m h i s p a r e n t s l a s t y e a r , b u t s o f a r h e h a s m a d e n o p a y m e n t s t o t h e m .
- B i l l m a k e s m o n t h l y p a y m e n t s o f ₱ 1 2 , 0 0 0 . 0 0 o n a n i n s t a l l m e n t l o a n ; a b o u t h a l f o f i t i s i n t e r e s t , a n d t h e b a l a n c e i s r e p a y m e n t o f p r i n c i p a l . H e h a s 2 0 p a y m e n t s l e f t, t o t a l i n g ₱ 2 4 0 , 0 0 0 . 0 0 .
- B i l l p a i d ₱ 2 8 , 0 0 0 . 0 0 i n t a x e s d u r i n g t h e y e a r a n d i s d u e a t a x r e f u n d o f ₱ 4 , 5 0 0 . 0 0 , w h i c h h e h a s n ’ t y e t r e c e i v e d .
- B i l l i n v e s t e d ₱ 1 8 , 0 0 0 . 0 0 i n s o m e c o m m o n s t o c k .
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