In: Accounting
A personal statement of financial condition dated December 31, 20X8, is to be prepared for Wilhelm Holz. He provides the following information for your use in preparing the statements. All amounts are as of December 31, 20X8.
Required:
Prepare a statement of financial condition for Mr. Holz as of
December 31, 20X8. Assume any gain on subsequent sale of the
residence will not be tax-exempt.
Essay
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Personal Financial Statement | |
12/31/2018 | |
Assets | Amount in Dollars (Fair Market Value) |
Cash in Hand and Bank | 4,000 |
Investment | 78,000 |
Retirement Fund ( 401(k) ) | 700,000 |
Real Estate | 320,000 |
With holding Tax receivable | 9,500 |
Total Assets | 1,111,500 |
Liabilities | Amount in Dollars |
Current Debt (Credit cards, Accounts) | 5,000 |
Mortgage | 80,000 |
Total Liabilities | 85,000 |
Net Worth | 1,026,500 |
Notes | |
Networth = Total Asset-Total Liabiliy | |
With holding tax calculation | |
Current year tax liability =15000*30% | |
=4500 | |
Tax with held in 20X8 =14000 | |
Final withholding =14000-4500 | |
=9500 | |
Assets and liability will be considered in Fair market value it isn’t considered an asset unless he own it. It does not include a home or apartment he i renting or other minor and not highly valued items. |
Retirement plan
Start saving early and as much as possible.
ake advantage of any and all employer-match programs. The most common of these are 401Ks. Many employers match, up to a certain amount, of employee contributions to their 401k. This is essentially free money that, if taken advantage of, will significantly increase your savings potential and retirement fund.