se Worksheet 2.1. Sadie Richardson’s banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application for a $3,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2020: Cash on hand $ 70 Balance in checking account 180 Balance in money market deposit account with Southwest Savings 690 Bills outstanding: Telephone $ 20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Taxes 400 Insurance 220 1,300 Condo and property 69,000 Condo mortgage loan 54,000 Automobile: 2015 Honda Civic 12,000 Installment loan balances: Auto loans 3,000 Furniture loan 500 3,500 Personal property: Furniture 1,050 Clothing 900 1,950 Investments: U.S. government savings bonds 500 Stock of Commodities Corp. 3,000 3,500 From the data given, prepare Sadie Richardson’s balance sheet, dated June 30, 2020 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset. Balance Sheet Name(s): Sadie Richardson Date: 30-Jun-2020 ASSETS LIABILITIES Liquid Assets Current Liabilities Cash on hand $ Utilities $ In checking Rent Savings accounts Insurance premiums Money market funds and deposits Taxes Medical/dental bills Certificates of deposit (<1 yr. to matutity) Repair bills Total Liquid Assets $ Bank credit card balances Investments Department store credit card balances Stocks Travel and entertainment card balances Bonds Gas and other credit balances Certificates of deposit (>1 yr. to maturity) Bank line of credit balances Mutual funds Other current liabilities Real estate Total Current Liabilities $ Retirement funds, IRA Long-Term Liabilities Other Primary residence mortgage $ Total Investments $ Real estate investment Real Property mortgage Primary residence $ Auto loans Second home Appliance/furniture loans Other Home improvement loans Total Real Property $ Single-payment loans Personal Property Education loans Autos $ Margin loans used to purchase securities Other long-term loans Recreational vehicles Household furnishings Total Long-Term Liabilities $ Jewelry and artwork Other Total Liabilities $ Other Total Personal Property $ Net Worth $ Total Assets $ Total Liabilities and Net Worth $

se Worksheet 2.1. Sadie Richardson’s banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application for a $3,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2020: Cash on hand $ 70 Balance in checking account 180 Balance in money market deposit account with Southwest Savings 690 Bills outstanding: Telephone $ 20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Taxes 400 Insurance 220 1,300 Condo and property 69,000 Condo mortgage loan 54,000 Automobile: 2015 Honda Civic 12,000 Installment loan balances: Auto loans 3,000 Furniture loan 500 3,500 Personal property: Furniture 1,050 Clothing 900 1,950 Investments: U.S. government savings bonds 500 Stock of Commodities Corp. 3,000 3,500 From the data given, prepare Sadie Richardson’s balance sheet, dated June 30, 2020 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset. Balance Sheet Name(s): Sadie Richardson Date: 30-Jun-2020 ASSETS LIABILITIES Liquid Assets Current Liabilities Cash on hand $ Utilities $ In checking Rent Savings accounts Insurance premiums Money market funds and deposits Taxes Medical/dental bills Certificates of deposit (<1 yr. to matutity) Repair bills Total Liquid Assets $ Bank credit card balances Investments Department store credit card balances Stocks Travel and entertainment card balances Bonds Gas and other credit balances Certificates of deposit (>1 yr. to maturity) Bank line of credit balances Mutual funds Other current liabilities Real estate Total Current Liabilities $ Retirement funds, IRA Long-Term Liabilities Other Primary residence mortgage $ Total Investments $ Real estate investment Real Property mortgage Primary residence $ Auto loans Second home Appliance/furniture loans Other Home improvement loans Total Real Property $ Single-payment loans Personal Property Education loans Autos $ Margin loans used to purchase securities Other long-term loans Recreational vehicles Household furnishings Total Long-Term Liabilities $ Jewelry and artwork Other Total Liabilities $ Other Total Personal Property $ Net Worth $ Total Assets $ Total Liabilities and Net Worth $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

Preparing personal balance sheet

Use Worksheet 2.1. Sadie Richardson’s banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application for a $3,000 home improvement loan. She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2020:

Cash on hand	$ 70
Balance in checking account	180
Balance in money market deposit account with
Southwest Savings	690
Bills outstanding:
Telephone	$ 20
Electricity	70
Charge account balance	190
Visa	180
MasterCard	220
Taxes	400
Insurance	220	1,300
Condo and property		69,000
Condo mortgage loan		54,000
Automobile: 2015 Honda Civic		12,000
Installment loan balances:
Auto loans	3,000
Furniture loan	500	3,500
Personal property:
Furniture	1,050
Clothing	900	1,950
Investments:
U.S. government savings bonds	500
Stock of Commodities Corp.	3,000	3,500

From the data given, prepare Sadie Richardson’s balance sheet, dated June 30, 2020 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset.

Balance Sheet
Name(s): Sadie Richardson	Date: 30-Jun-2020
ASSETS	LIABILITIES

Liquid Assets		Current Liabilities
Cash on hand	$	Utilities	$
In checking		Rent
Savings accounts		Insurance premiums
Money market funds and deposits		Taxes
		Medical/dental bills
Certificates of deposit (<1 yr. to matutity)		Repair bills
Total Liquid Assets	$	Bank credit card balances
Investments		Department store credit card balances
Stocks		Travel and entertainment card balances
Bonds		Gas and other credit balances
Certificates of deposit (>1 yr. to maturity)		Bank line of credit balances
Mutual funds		Other current liabilities
Real estate		Total Current Liabilities	$
Retirement funds, IRA		Long-Term Liabilities
Other		Primary residence mortgage	$
Total Investments	$	Real estate investment
Real Property		mortgage
Primary residence	$	Auto loans
Second home		Appliance/furniture loans
Other		Home improvement loans
Total Real Property	$	Single-payment loans
Personal Property		Education loans
Autos	$	Margin loans used to purchase securities
		Other long-term loans
Recreational vehicles
Household furnishings		Total Long-Term Liabilities	$
Jewelry and artwork
Other		Total Liabilities	$
Other
Total Personal Property	$	Net Worth	$
Total Assets	$	Total Liabilities and Net Worth	$

Solvency ratio. Enter your answer as a percentage rounded to two decimal places.
%
Liquidity ratio. Enter your answer as a percentage rounded to two decimal places.
%
Equity in her dominant asset. Enter your answer as a percentage rounded to two decimal places.
%

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.