On 1 January 2018, financial assets were $40,000 of which shares valued at $10,000 and the remainder are currency and deposits. Short term and long-term liabilities were $4000 and $6000, respectively. Suppose households conducted the following transactions in 2018Spends $35,000 on consumptionReceives $37,000 in wages and salariesSells $6,500 worth of sharesRepays $1,500 short-term and $2,500 long-term loans.In addition, the value of shares increased by 10% and households received $1500 worth of food voucher. Determine the household balance sheet as at 31 Dec 2018 and it revaluation account for 2018.

Answered: On 1 January 2018, financial assets…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On 1 January 2018, financial assets were $40,000 of which shares valued at $10,000 and the remainder are currency and deposits. Short term and long-term liabilities were $4000 and $6000, respectively. Suppose households conducted the following transactions in 2018

Spends $35,000 on consumption
Receives $37,000 in wages and salaries
Sells $6,500 worth of shares
Repays $1,500 short-term and $2,500 long-term loans.

In addition, the value of shares increased by 10% and households received $1500 worth of food voucher. Determine the household balance sheet as at 31 Dec 2018 and it revaluation account for 2018.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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