Jacob’s monthly income is $2,800 and his monthly expenses total around $2,000. He has been contemplating...

Jacob’s monthly income is $2,800 and his monthly expenses total around $2,000. He has been contemplating how to use his about $800 surplus. He has the following financial records:

Cash in his bank account $560

Investment in a mutual fund which he can easily convert to cash $850

Car (valued at) $12,000

Household personal possessions $2,850

Credit card balances $1,250

Miscellaneous short term debts $520

Student loan balance $8,500

Balance on car loan $4,500

Prepare balance sheet for Jacob.

Solutions

Expert Solution

Jacob's balance sheet is as below:

Jacob's Captial	1490
Long Term Liabilities		Fixed Assets
a. Student loan Balance	8500	a. Car	12000
b. Car Loan Balance	4500	b. Household Properties	2850
Current Liabilities		Current Assets
a. Credit Card Balance	1250	a. Cash in hand	560
b. Miscellanious short term debts	520	b. Mutual fund investments	850
Total Liabilities	16260	Total Assets	16260

jeff jeffy answered 2 years ago

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