Transactions Assignment On September 1st, 2021, Mr. V has the following assets and liabilities. Assets Cash Contents of Home Prepaid Expenses Mr. V's Balance Sheet September 1st, 2021 Liabilities 17,000 Unpaid Accounts 4,000 Bank Loans 800 Loan from Parents Total Liabilities 2,000 25,000 35,000 62,000 Total Assets Net Worth *(40,200) 21,800 Total Liabilities + NW 21,800 NOTE* THIS IS A NEGATIVE NET WORTH a) Create T-Accounts for all of the above accounts. b) Use your created T-Accounts to record the following transactions made by Mr. V during the month of ptember. You WILL need to create other T-Accounts that are not included in the balance sheet. 1. Mr. V buys coffee for $150 on September 1st 2. Mr. V Prepays $800 for his rent for October on September 2nd 3. Mr. V wins $100,000 cash in a lottery on September 3rd 4. Mr. V purchases a house worth $260,000 using $52,000 Cash and a $208,000 Mortgage on September 4th 5. Mr. V pays $8000 of his bank loan, $500 of which is interest and the rest ($7,500) is principal, on September 5th 6. Mr. V gets a haircut for $70 on September 6th 7. Mr. V is paid $5,000 salary for teaching on September 7th 8. Mr. V buys a new car worth $35,000 using $8,000 cash, and a $27,000 bank loan on September 8th 9. Mr. V buys coffee for $50 on September 9th 10. Mr. V pays off $2,000 of his unpaid accounts on September 10th 11. Mr. V buys $500 of furniture using his credit card on September 11th 12. Mr. V makes $75 of phone calls and receives a bill which he will pay next month on September 12th 13. Mr. V has now used up $800 worth of rent on September 31st c) Calculate the Totals for all of your T-Accounts. d) Use your T-Accounts to create an income statement for Mr. V for September. e) Calculate Mr. V's New Net Worth. f) Use your T-Accounts and income statements to create a balance sheet for Mr. V on October 1st. On September 1st, 2021, Mr. V has the following assets and liabilities. Assets Cash Contents of Home Prepaid Expenses Mr. V's Balance Sheet September 1st, 2021 Liabilities 17,000 Unpaid Accounts 4,000 Bank Loans 800 Loan from Parents Total Liabilities 2,000 25,000 35,000 62,000 Total Assets Net Worth *(40,200) 21,800 Total Liabilities + NW 21,800 NOTE* THIS IS A NEGATIVE I + WORTH a) Create T-Accounts for all of the above accounts. b) Use your created T-Accounts to record the following transactions made by Mr. V during the month of September. You WILL need to create other T-Accounts that are not included in the balance sheet. 1. Mr. V buys coffee for $150 on September 1st 2. Mr. V Prepays $800 for his rent for October on September 2nd 3. Mr. V wins $100,000 cash in a lottery on September 3rd 4. Mr. V purchases a house worth $260,000 using $52,000 Cash and a $208,000 Mortgage on September 4th 5. Mr. V pays $8000 of his bank loan, $500 of which is interest and the rest ($7,500) is principal, on September 5th 6. Mr. V gets a haircut for $70 on September 6th 7. Mr. V is paid $5,000 salary for teaching on September 7th 8. Mr. V buys a new car worth $35,000 using $8,000 cash, and a $27,000 bank loan on September gth 9. Mr. V buys coffee for $50 on September 9th 10. Mr. V pays off $2,000 of his unpaid accounts on September 10th 11. Mr. V buys $500 of furniture using his credit card on September 11th 12. Mr. V makes $75 of phone calls and receives a bill which he will pay next month on September 12th 13. Mr. V has now used up $800 orth of rent on September 31st. c) Calculate the Totals for all of your T-Accounts. d) Use your T-Accounts to create an income statement for Mr. V for September. e) Calculate Mr. V's New Net Worth. f) Use your T-Accounts and income statements to create a balance sheet for Mr. V on October 1st
