Companies prepare balance sheets in order to know their financial position at a specific point in time. This enables them to make a comparison to their position at previous points in lime and gives them a basis for planning for the future. In order to evaluate your financial position, you can prepare a personal balance sheet. Assume that you have compiled the following information regarding your finances. (Hint: Some of the items might not be used in your personal balance sheet.)
Amount owed on student loan balance (long-term) | $ 5.000 |
Balance in checking account | 1,200 |
Certificate of deposit (6-month) | 3,000 |
Annual earnings from part-time job | 11,300 |
Automobile | 7,000 |
Balance on automobile loan (current portion) | 1,500 |
Balance on automobile loan (long-term portion) | 4,000 |
4 Accural Accounting Concepts
4 Accural Accounting Concepts
Home computer | 800 |
Amount owed to you by younger brother | 300 |
Balance in |
1.800 |
Annual tuition | 6.400 |
Video and stereo equipment | 1.250 |
Balance owed on credit card (current portion) | 1.50 |
Balance owed on credit card (long-term portion) | 1,650 |
Instructions
Prepare a personal balance sheet using the formal you have learned for a classified balance sheet for a company. For the equity account, use M. V. Own, Capital.
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Additional Business Textbook Solutions
Managerial Accounting (5th Edition)
Financial Accounting, Student Value Edition (4th Edition)
Principles of Accounting Volume 1
Intermediate Accounting
Principles of Accounting Volume 2
Intermediate Accounting (2nd Edition)
- It's important to know who and how you'll be using financial statements.arrow_forwardWhich of the following accounts would increase owners equity? a. Cash b. Accounts Payable c. Accounts Receivable d. Income from Tutoringarrow_forwardFor the following transactions, show which Balance Sheet line items will be affected and if the effect will result in the line item increase or reduction. • Purchase a Treasury Bill for cash• Client withdraws savings• Receive a donation• A current loan becomes past due• Purchase motorcycle for staff with short-term creditarrow_forward
- Financial statements may be defined as a structured financial representation of the events that have an impact on an entity and the transactions undertaken by it during the financial year to which these statements relate. Financial records will be most beneficial when we keep accurate books of accounts. 1. Explain what you would need to keep accurate books of accounts. Give examples in reference to the institution you are familiar with and list the steps that you expect a financial transaction to go through. 2. Record the following transactions in the appropriate ledger accounts and prepare a Trail Balance as at 30th June 2022. June 2022 1st : 3rd : 4th 5th 7th 9th 10th : 11th : 12th : 14th : 15th : 16th : 17th : 18th : 19th : 20th : : : : : Nchimunya started business with a capital of K 80,000 Bought goods from Bwalya on credit K 20,000 Sold goods to Twaambo K 25,000 Cash purchases K25,000 Cash sales K 15,000 Goods retuned to Bwalya K 2,000 Bought furniture for K15, 000 Cash paid to…arrow_forwardWho collects all of the financial information and determines your score? Give examples of information that is collected?arrow_forwardIt is important to understand your financial statements. While this is not everyone’s area of expertise, it is critical that you know how to read a balance sheet and income statement. What do each of these statements tell you? Why are they important?arrow_forward
- Could anyone explain this question? indicate the financial statement on which the account’s balance should be found. Also, if the account is shown on a company’s balance sheet, indicate if it should appear in the asset section, liability section, retained earnings section, income section, or stockholders’ equity section. Accounts Receivable Note Receivable Discount on Note Receivable Bank Service Charge Expense Bad Debts Expense Sales Return Liability Interest Revenue Allowance for Doubtful Accounts Cash Over/ Short Interest Receivable Sales Returns and Allowancesarrow_forwardIdentify which type of major accounts will cover the following and in what type of organization will such be applicable. Write your answers on the blanks. 1. Property, plant, and equipment 2. Notes payable 3. Cash 4. Accounts payable 5. Accrued expenses 6. Salaries and benefits 7. Sales 8. Inventories 9. Service income 10. Rent 11. Retained earnings 12. Accounts receivable 13. Prepaid supplies 14. Notes receivable 15. Shareholders' equityarrow_forwardCan you fill in the tables and answer the questions? I would appreciate it If you could also explain how to plug this into a financial calculator. Here's a link to a financial calculator: http://www.fncalculator.com/financialcalculator?type=tvmCalculatorarrow_forward
- explain how you apply accounting in your personal life in reference to the following: 1. Give 3 examples of what you would consider to be assets. 2. Give 2 examples of what you would consider to be liabilities. 3. Assign values (they don't need to be actual values) to each of the above and show how you would determine your net worth. 4. What statement would you report all of the above accounts and amounts on? 5. Explain what would cause your net worth to change over the next month?arrow_forwardAnalyze routine economic events—transactions—and record their effects on acompany’s financial position using the accounting equation format.arrow_forwardWhich of the following transactions will increase an asset and increase stockholders’ equity?a. Performing a service on account for a customerb. Borrowing money from a bankc. Collecting cash from a customer on an account receivabled. Purchasing supplies on accountarrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub