代写 personal financial statement assignment
Homework – Your personal financial statement (Due June 20th)
The goal of this homework is to apply the same accounting concepts for company transactions to your personal life so that you can create your own balance sheet, & income statement.
You will make up your own transactions (10 transactions required) and you will have to write the journal entries or create a T-account. Ultimately, they will have to match up in the balance sheet and the income statement.
The difference between a company’s financial statement and yours is the Shareholders Equity section. This section will be a savings account or your personal equity. For Example:- If you make 100,000$ a year and spend 90,000 à the remaining $10,000 goes into your personal Retained Earnings which is basically your personal savings account. That is your Shareholders Equity (where you are the shareholder in yourself, so you should call it your personal equity).
There is no common stock transaction
Notes:-
a) Create a date for each transaction
b) Note down whether the account is an asset, liability or a part of your personal equity.
c) For simplicity, create the Income Statement &Balance Sheet for the time period between January 1st, 2016 & December 31st, 2016.
d) The Balance sheet should be as of December 31st, 2016.
e) The way you earn money is through work (Transaction 1)
f) You must use following accounts at the minimum: Accounts Receivable, Bad Debt Expense, Prepaid Expenses, Accounts Payable (or Short Term Debt), Accrued Expenses, Long-Term Debt, Interest Expense.
g) Keep the calculations for interest expense simple. Multiples of 12 are nice and easy for the monthly calculations.
h) You can ignore Income taxes here for simplicity. Think of all your income as after-tax.
i) Please answer the 3 questions at the end of the transactions also à Leverage Ratio, Current Ratio & Net Income.
j) Important: You will have to create your own transactions àYou can use the ones below as a guide and you can have similar transactions but please write your own. You can use your personal life as motivation for creating the transactions.
Examples of transactions:-
1. February 5th: I receive $30,000 a month for providing accounting services to Brickell Inc for January 2016. You work as an accountant for Brickell Inc. and earn $30,000 every month but get paid on the 5th day of the next month.
2. I pay Direct TV $12,000 on January 1st, 2016 for cable service for the entire year of 2016.
3. On January 1st, 2016. I bought a BMW 7-series and took a car loan for $100,000 from Chase Bank to pay for my car. The Loan is due December 31st, 2020. Here, I am the owner of the car because I am financing it (You have to record depreciation for the car since you own it). I pay 12% interest on the loan every year ($1,000 interest expense every month). I pay the interest at the end of January of the next year (January31st, 2017).
4. On March 1st, I bought a house worth $500,000 for which I borrowed from Bank of America a 30-year loan. I pay 12% interest on that loan every year, and the payments are made every 6 months. (First payment on September 1st, 2016 & next payment on March 1st, 2017)
5. I will pay Miami Electric $15,000 on March 31st, 2017 for electricity services from January 1st,2016 to December, 2016.
6. I spent $20,000 on my American Express credit card, $15,000 on my Discover credit card, $5,000 on my MasterCard and $10,000 on my VISA credit card during the entire year of 2016. I plan to pay back all these credit cards on February 1st, 2017. This money was spent on living expenses like food, gas, entertainment, shopping, etc.
7. I spent $3000 to buy 3 credit reports from the 3 credit rating agencies – Experian, Transunion & Equifax.
8. I lent $10,000 to my friend, Lebron on March 1st, 2016. On November 30th, 2016 I found out that Lebron is leaving for Cleveland and never coming backL. Now I will not be able to collect any of the money he owes me.
9. I hired Home Depot Services and paid them $10,000 cash to clean my house and lawn on December 1st, 2016.
10. I drove the BMW 7-series for 30,000 miles in 2016, and on December 31st, 2016 I note that the vehicle is worth $30,000 less from the wear and tear.
11. I remodeled the kitchen and attic in my house and paid $30,000 to Remodelers Inc. This remodeling improved the value of my house by $30,000.
代写 personal financial statement assignment
- What is your leverage ratio?
- What is your Current Ratio?
- What is your net income?
The homework is 5% of your grade and you can get up to 2% bonus if you can create the cash flow statement.
代写 personal financial statement assignment
