Question

Amy is single and 25 years old. She graduated two years ago and has been working full time ever since. She is having a bit of trouble getting her finances in order. She just can't seem to make ends meet and can't seem to save any money. Her employment income is $31,000 per year. She is proud of the fact that she has begun to contribute to the 40143 retirement plan offered by her employer. After taxes, health insurance premiums, and contributions to her 401(k) plan; Amy's net pay is $1,950 per month. Amy keeps her financial records in a shoebox in a closet in her apartment. Going through her canceled checks, bank statements, credit card receipts, and so forth, she has come up with the following list: Circle one ALIE ALIE ALIE ALIE Income tax refund Apartment rent paid Utilities bills paid during the year Unpaid telephone and utility bills Value of her 2003 Honda Civic Car insurance premium paid this year Gas and other transportation expenses paid Amount spent on clothing Value of furniture Appraised value of jewelry Student loan payments made Balance of student loan unpaid Amount spent on food Amount spent on entertainment ATM withdrawals (don't know what for) Cost of skiing vacation taken Balance owed on Visa card Extra payments made on credit card this year Value of 403(b) retirement account Checking account balance Savings account balance Interest earned on savings account 5500 7,200 1,800 125 6,000 600 1,200 2,400 3,500 3,500 1,200 4,500 3,000 1,800 2,400 1,000 1,450 1,000 2,500 750 1,200 60 ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE ALIE

Determine whether each of the above is an Asset, Liability, Income or Expense and circle the appropriate letter to the right of each one.

Answer 1

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Particulars	Amount	Circle One
Income Tax Refund	$500	Income
Apartment Rent paid	7200	Expenses
Utilities bills paid during the year	1800	Expenses
Unpaid telephone and utility bills	125	Liability
Value of her 2003 Honda Civic	6000	Assets
Car Insurance premium paid this year	600	Expenses
Gas and other transportation expenses paid	1200	Expenses
Amount spent on clothing	2400	Expenses
Value of furniture	3500	Assets
Appriased value of Jewelry	3500	Assets
Students loan payments made	1200	Expenses
Balance of student loan unpaid	4500	Liability
Amount spent on food	3000	Expenses
Amount spent on entertainment	1800	Expenses
ATM withdrawals ( don't know what for)	2400	Expenses
Cost of skiing vacations taken	1000	Expenses
Balance Owed on Visa Card	1450	Liability
Extra payments made on credit card this year	1000	Assets
Value of 403(b) retirement account	2500	Assets
Checking account balance	750	Assets
Saving account balance	1200	Assets
Interest earned on saving account	60	Income

The following are the simple definitions of Assets, liability, Income and expenses:

Assets

An item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies

Liability

The state of being legally responsible for something.

Income

Income is money that an individual or business receives in exchange for providing a good or service or through investing capital

Expenses

he cost incurred in or required for something.