Question

Joshua and Tiffany have a net worth of $25,000 and total assets of $140,000. They have credit card and other monthly bills of $2,200. You are preparing their Balance Sheet. What are their total liabilities?

On an income and expense statement covering January 1 to June 30, Which one of the following would not be included as income.

		wages and salaries received in that six months
		interest received on June 30
		auto sold with payment received May 15
		inheritance granted in April, to be paid in September
		income tax refund received April 14

You put $2,000 into an account every year for 10 years. You earn 7% compounded annually. How much money will you have after 10 years? $40,000 $24,863 $27,633 $25,388 $32,860

Answer 1

Answer:-

Part A - Joshua and Tiffany

Net Worth = $25,000

Total Assets = $140,000

Total Liabilities = Total Assets - Net Worth = $140,000 - $25,000 = $115,000

Part B - Income and Expense statement covering Jan 1 to June 30

Wages and salaries received in that six months - This is income

interest received on June 30 - Income

auto sold with payment received May 15 - Income

inheritance granted in April, to be paid in September - Expense

income tax refund received April 14 - Income

If you look into the all transactions all are income except the transaction "inheritance granted in April, to be paid in September". This is an expense to be paid.

So this transaction would not be included as income.

Part C

Annual deposit = $2,000

No of years = 10 Years

Rate of interest = 7% compounded annually

Compution of accumulated amount after 10 Years

So the answer is option C - $27,633