Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 2, Problem 3FPE
Preparing personal
From the data given, prepare Katie Wright’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.
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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:…
Prepare the individual account of H. Potter in the debtors ledger of Dumbledore (15) Magic World for May 2019.
As at 31 December 2019 Jenny had a bank loan of $4.500 and a balance of $1,400 in her bank acCount.
How should these amounts be recorded on Jenny's opening trial balance at 1 January 2020?
Select one:
a. Debit $1,400 and Credit $4,500
b. Debit $4,500 and Credit $1,400
c. Credit $5,900
d. Debit $5.900
Chapter 2 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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