Question

Juan and Maria Gomez have been married for over 10 years. They both have good jobs with consistent incomes, and they are good savers. They believe that their financial picture is good, but they have never prepared a balance sheet. Juan and Maria pulled together the following items from bank statements, pay stubs, and bills. Check the items that would appear on a balance sheet. Do not be concerned about whether the amounts are correct. Check all that apply. ロロロロロロロロロロロ IRA investments AAA Bank mutual fund Auto: 2010 Suburban (cost) Auto: 2007 Honda Pilot (cost) Auto loan balance (last payment) Bonds City Bank-checking City Bank-savings Cash Juan's salary Balance due on American Express credit card $ 6,750 5,650 23,000 20,000 1,125 10,800 36,000 45,000 300 45,000 ロロロロロロロロロロロ Unpaid electric bill Life Insurance (cash value) Balance due on Master Card Balance due on Visa credit card Primary home Primary home mortgage Unpaid property taxes Maria's diamond earrings Stocks Unpaid telephone bill Amount paid last month for telephone $ 525 5,400 1,000 250 340,000 283,500 2,550 5,000 13,500 250 500 2,025 In addition, the Gomez's provided the following information: Based on comparable homes listed for sale in their neighborhood, the Gomez's believe that their home value is about 8% more than what they paid for it. The principal portion of their mortgage payments is approximately $950 per month. . A reliable jeweler said that Maria's diamond earrings could be sold at the value provided. After looking at Kelley Blue Book, they believe their cars can be sold for about 55% of original . cost. Use this information to fill in the missing amounts on Juan and Maria's balance sheet. You can use what you checked above to make sure you accounted for everything. Note: Some amounts are given to check your work. Round your percent to the one decimal place.

Answer 1

Balancesheet
Juan and Maria Gomes
Dec 31, 2017	Dollars	Percentage
Assets
Monetary Assets
City Bank-checking	36000	6.93%
City Bank-savings	45000	8.67%
Cash	300	0.06%
Life Insurance (cash)	5400	1.04%
Total Monetary Assets	86700	16.70%
Intangible Assets
Auto:2010 Suburban (cost)	12650	2.44%
Auto: 2007 honda Pilot (cost)	11000	2.12%
Primary home	367200	70.72%
Total intangible asset	390850	75.27%
Investment Assets
IRA investments	6750	1.30%
AAA Bank mutual fund	5650	1.09%
Bonds	10800	2.08%
Stocks	13500	2.60%
Diamond earrings	5000	0.96%
Total investment Assets	41700	8.03%
Total Assets	519250	100.00%
Liabilities
Short term liabilities
Current mortgage debt	11400	2.20%
Credit card debt	3275	0.63%
Property taxes	2550	0.49%
Auto loan	1125	0.22%
Electricity bill	525	0.10%
Telephone bill	250	0.05%
Total Short term liabilities	19125	3.68%
Long term portion of mortgage	272100	52.40%
Total liabilities	291225	56.09%
Net worth	228025	43.91%
Total liabilities and net worth	519250	100.00%

Value of:
Auto: 2010 Suburban
Cost	23000
Carrying value	55% of cost
	=55% of 23000
	12650
Auto: 2007 Honda pilot
Cost	20000
Carrying value	55% of cost
	=55% of 20000
	11000
Primary Home
Cost	340000
Revalued	8%
Fair value	=340000+ 8%
	=340000*1.08
	367200

Monetary assets are those which could be easily converted into cash i.e. cash, bank, accounts receivables

Investments include stocks,bonds, hewellary which do or donot actively trade in the market

Tangible assets include fixed assets like automobile, equipment, plant and propoerty