FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Thomas Green, of Laramie, Wyoming, has been a retail salesclerk for six years. At age 35, he is divorced with one child, Amanda, age 7. Thomas' salary is $46,000 per year. He regularly receives $500 per month for child support from Amanda's mother. Thomas invests $100 each month ($50 in his mutual fund and $50 in U.S. savings bonds).
ASSETS | Amount |
Vested retirement benefits (no employee contribution) |
$ 6,000 |
5,000 |
|
Mutual fund (includes $200 of reinvested dividend income from last year) | 5,000 |
Checking account | 1,000 |
Personal property | 4,000 |
Automobile | 11,500 |
U.S. savings bonds | 3,500 |
LIABILITIES | Outstanding Balance |
Dental bill (pays $25 per month and is included in uninsured medical/dental) | $ 450 |
Visa (pays $100 per month) | 3,500 |
Student loan (pays $100 per month) | 6,500 |
ANNUAL FIXED EXPENSES | Amount |
Auto insurance | $ 780 |
Rent | 12,000 |
Uninsured medical/dental | 1,000 |
Federal income tax | 5,600 |
Social Security taxes | 3,500 |
Health insurance | 2,440 |
ANNUAL VARIABLE EXPENSES | Amount |
Dry cleaning | $ 480 |
Utilities | 2,400 |
iPhone | 980 |
Cable | 1,400 |
Internet | 800 |
Food | 3,000 |
Personal care | 420 |
Gas, maintenance, license | 2,120 |
Clothes | 500 |
Entertainment | 2,500 |
Vacations/visitation/travel | 3,000 |
Child care | 5,000 |
Gifts | 400 |
Miscellaneous | 300 |
Using the information above, construct a
Balance Sheet for Thomas Green | ||||||||
Dollars | Percent | |||||||
ASSETS | ||||||||
Monetary Assets | ||||||||
Checking account | $ | % | ||||||
Money market account | % | |||||||
U.S. savings bonds | % | |||||||
Total Monetary Assets | $ | % | ||||||
Tangible Assets | ||||||||
Personal property | $ | % | ||||||
Automobile | % | |||||||
Total Tangible Assets | $ | % | ||||||
Investment Assets | ||||||||
Mutual fund | $ | % | ||||||
Vested retirement benefits | % | |||||||
Total Investment Assets | $ | % | ||||||
TOTAL ASSETS | $ | % | ||||||
LIABILITIES | ||||||||
Short-Term Liabilities | ||||||||
Dental bill | $ | % | ||||||
Visa | % | |||||||
Total Short-Term Liabilities | $ | % | ||||||
Long-Term Liabilities | ||||||||
Student loan | $ | % | ||||||
Total Long-Term Liabilities | $ | % | ||||||
TOTAL LIABILITIES | $ | % | ||||||
NET WORTH | $ | % | ||||||
TOTAL LIABILITIES AND NET WORTH | $ | % |
Cash-Flow Statement for Thomas Green | ||||||||
Dollars | Percent | |||||||
INCOME | ||||||||
Thomas' salary | $ | % | ||||||
Child support | % | |||||||
Interest and dividends | % | |||||||
TOTAL INCOME | $ | % | ||||||
EXPENDITURES | ||||||||
Fixed Expenses | ||||||||
Rent | $ | % | ||||||
Mutual fund | % | |||||||
U.S. savings bond | % | |||||||
Health insurance | % | |||||||
Auto insurance | % | |||||||
Uninsured medical/dental | % | |||||||
Taxes | % | |||||||
Debt payments | % | |||||||
Total Fixed Expenses | $ | % | ||||||
Variable Expenses | ||||||||
Food | $ | % | ||||||
Utilities | % | |||||||
iPhone | % | |||||||
Cable | % | |||||||
Internet | % | |||||||
Gas, maintenance, license | % | |||||||
Dry cleaning | % | |||||||
Personal care | % | |||||||
Child care | % | |||||||
Clothes | % | |||||||
Entertainment | % | |||||||
Vacation/visitation/travel | % | |||||||
Gifts | % | |||||||
Miscellaneous | % | |||||||
Total Variable Expenses | $ | % | ||||||
TOTAL EXPENSES | $ | % | ||||||
NET GAIN | $ | % |
business accounting
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