Hugo Garcia is preparing his balance sheet and income and expense statement for the year ending December 31, 2020. He is having difficulty classifying a few items and asks for your help. Which of the transactions are assets, liabilities, income, or expense items? a. Hugo rents a house for $1,350 a month. b. Hugo bought diamond earrings for his wife and charged them using his Visa card. The earrings cost $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 is repayment 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.
Hugo Garcia is preparing his
Which of the transactions are assets, liabilities, income, or expense items?
a. Hugo rents a house for $1,350 a month.
b. Hugo bought diamond earrings for his wife and charged them using his Visa card. The earrings cost $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 is repayment 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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
