Question

Asus All a number of September 15, 2019 cash of September 1, 2019, Mr. V has the V has the following Assets. A Computer worth $600, $37 in cash, a car worth $25000, and other possess wier possessions worth $1000. Mr. V has the following liabilities: $34000 in bank toans, a $14000 loan from his parents, a $1200 credit card bill, and a $45 phone bill. A) Use Mr. V's information to create a balance sheet for September 19 2019. Make sure to calculate his Net Worth B) Complete the following transactions then create and Income Statement and Jep. statement for Mr.V. During the Month of September, Mr. V makes the following Transactions: 1. Mr. V buys coffee for $10. 2. Mr. V Pays $500 for his rent for September. 3. Mr. V Pays $500 for his rent for October. 4. Mr. V wins $1000 cash in a lottery. 5. Mr. V gets a haircut for $25. 6. Mr. V is paid $4000 for teaching for September. 7. Mr. V pays $2000 of his bank loan. 8. Mr. V pays his $1200 credit card bill. 9. Mr. V pays his $45 phone bill. 10. Mr. V pays $100 interest on his loans. 11. Mr. V buys a $1000 desk chair using his credit card. 12. Mr. V uses gets a bill for his phone for $45 which he will pay next month. Asseses Cash liability Bank loans 34000 Computer loans Itovo Coc 25 000 Credre card ball 1200 phone bill other possessions 1050 total lia 49245 Total 26637

September 1st, 2019, Mr. V has the following Assets. A Computer worth $600, $37 in cash, a car worth $25000, and other possessions worth $1000. Mr. V has the following liabilities: $34000 in bank loans, a $14000 loan from his parents, a $1200 credit card bill, and a $45 phone bill.

How to make ledger and journal based on this transaction

Answer 1

1. Balance Sheet of Mr. V as on 01-09-2019 :

Balance Sheet as on 01-09-2019
Liabilities	$	Assets	$
Bank Loans	34000	Computer	600
Loan from Parents	14000	Cash	37
Credit Card bill	1200	Car	25000
Phone Bill	45	Other Possessions	1000
Net Worth	-22608
Total	26637		26637

The Networth of Mr. V is negative as on 01-09-2019 i,e ($22608).

2. Income Statement and new Balance Sheet :

Income Statement after given Transactions
Expenses	$	Income	$
Coffee	10	Lottery	1000
Rent for September	500	Teaching Income	4000
Haircut	25
Interest on Loans	100
Phone Bill	45
Net Income	4320
Total	5000	Total	5000

New Balance Sheet after given Transactions
Liabilities	$	Assets	$
Bank Loans	32000	Computer	600
Loan from Parents	14000	Cash	657
Credit Card bill	1000	Car	25000
Phone Bill	45	Other Possessions	1000
Net Worth	-18288	Advance Rent for October	500
		Desk Chair	1000
Total	28757		28757

Calculations :

New Balance Sheet after given Transactions
Liabilities	$	Assets	$
Bank Loans	=34000-2000	Computer	600
Loan from Parents	14000	Cash	=37-10-500-500+1000-25+4000-2000-1200-45-100
Credit Card bill	=1200-1200+1000	Car	25000
Phone Bill	=45-45+45	Other Possessions	1000
Net Worth	=-22608+B19	Advance Rent for October	500
		Desk Chair	1000
Total	=SUM(B3:B8)		=SUM(D3:D8)
Income Statement after given Transactions
Expenses	$	Income	$
Coffee	10	Lottery	1000
Rent for September	500	Teaching Income	4000
Haircut	25
Interest on Loans	100
Phone Bill	45
Net Income	=SUM(D14:D15)-SUM(B14:B18)
Total	=SUM(B14:B19)	Total	=SUM(D14:D18)