Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Opened a bank account with previously earned ( retained earnings ) money for $ 1 0 0 , 0 0 0 Bought a house by

Opened a bank account with previously earned (retained earnings) money for $100,000
Bought a house by paying $75,000 down in cash and taking a loan of $225,000
Bought a vehicle by paying $1,000 down in cash and taking a loan of $44,000
Worked (performed services) to clients for $80,000 cash
Paid for materials used (expense) in the services performed with cash for $50,000
Paid for repairs and utilities of the house and vehicle (just regular expenses) with cash for $8,500
During the year, you paid $5,000 in interest and $9,500 in principal on the loan on the house with cash
During the year, you paid $600 in interest and $3,400 in principal on the loan on the vehicle with cash
During the year, you paid $18,500 for personal-related expenses in cash
At the end of the year, you purchased $3,250 in gifts (expenses) for others that you paid for with a new credit card
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions