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Please fill out the second chart below. Household earns a salary paid in a checking account (value=100). Household makes consumption expenses (value=80). Household buys a
Please fill out the second chart below.
Household earns a salary paid in a checking account (value=100). Household makes consumption expenses (value=80).
Household buys a property (value=15,000) with a down payment of 10,000 and a loan of 5,000.
show this households income statement and the net financial position of the household. Assume: zero depreciation of the property purchased.
Debit Credit 100 Entry Salary Deposits Consumption Expenses Deposits 100 80 80 Loan 5,000 5,000 Deposits Property Deposits 15,000 15,000 USES SOURCES ITEM (DEBITS) (CREDITS) 1 Receipts (Sources) 2 Current expenditures (Uses) 3 'Saving' (Source) 4 Capital expenditures (Uses) 5 Net financial position (Source) 6 Borrowing and debt repayment 7 Purchase and sale of financial assets 8 Change in deposits 9 Net balance of financial flows (Use)Step by Step Solution
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