(Record information on a spreadsheet, prepare a balance sheet, LO 1, 2, 5) In addition to the information provided in Problem 2-3, you also learn the following about Dennis’s assets:

i. Dennis thinks the car could be sold for about $2,200.

ii. A friend of Dennis recently offered him $1,000 for the computer.

iii. Dennis is unlikely to receive more than $1,000 for his personal property.

Required:

a. Revise the spreadsheet that you prepared in Problem 2-3 so that you use the additional information that Dennis provided you about his assets.

b. Use the revised spreadsheet to prepare a personal balance sheet for Dennis.

c. Compare your balance sheet with the one you prepared in Problem 2-3. Which do you think would be more useful to the art school in assessing Dennis’s need for financial assistance? Explain.

d. What problems arise when using market values of Dennis’s assets instead of the cost? What are some of the benefits of using the cost of the assets? Is the balance sheet prepared using market value information more or less useful than the balance sheet prepared using the cost information?