Question

Ahmed and Sana Mohamed 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. Ahmed and Sana 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. IRA investments 6,250 Unpaid electric bill 350 5,000 650 150 290,000 241,500 2,200 5,500 12,500 150 500 AAA Bank mutual fund 5,250 Life Insurance (cash value) 25,300 Balance due on Master Card Auto: 2010 Suburban (cost) Auto: 2007 Honda Pilot (cost) Auto loan balance (Tast payment) 22,000 Balance due on Visa credit card 750 Primary home Bonds City Bank-checking 10,000 Primary home mortgage 36,000 Unpaid property taxes 45,000 City Bank-savings Cash Sana's diamond earrings Stocks 300 Ahmed's salary Balance due on American Express credit card Unpaid telephone bill Amount paid last month for telephone 1,350 In addition, the Mohamed's provided the following information Based on comparable homes listed for sale in their neighborhood, the Mohamed'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 $800 per month A reliable jeweler said that Sana'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 Ahmed and Sana's balance sheet. You can use what you checked above to make sure you accounted for everything

Answer 1

BALANCE SHEET
	Name : Ahmed and Sana Mohammed
	Date : December 31, 2017
					Dollars	Percent
	ASSETS
	Monetary Assets
	City Bank - checking				$                 36,000	7.7%
	City Bank - savings				$                 45,000	9.7%
	Cash				$                       300	0.1%
	Total Monetary Assets				$                 81,300	17.5%
	Tangible Assets
	Auto : 2010 Suburban (cost)				$                 13,915	3.0%
	Auto : 2017 Honda Pilot (cost)				$                 12,100	2.6%
	Primary Home				$               313,200	67.4%
	Total Tangible Assets				$               339,215	72.9%
	Investment Assets
	IRA Investments				$                    6,250	1.3%
	AAA Bank mutual fund				$                    5,250	1.1%
	Bonds				$                 10,000	2.2%
	Life Insurance (cash value)				$                    5,000	1.1%
	Sana's Diamond earrings				$                    5,500	1.2%
	Stocks				$                 12,500	2.7%
	Total Investment Assets				$                 44,500	9.6%
	(1) TOTAL ASSETS				$               465,015	100.0%
	LIABILITIES
	Short Term Liabilities
	Current Portion of mortgage				$                    9,600	2.1%
	Credit Card Debt				$                    2,150	0.5%
	Property Taxes				$                    2,200	0.5%
	Auto Loan				$                       750	0.2%
	Electric Bill				$                       350	0.1%
	Telephone Bill				$                       150	0.0%
	Total Short Term Liabilities				$                 15,200	3.3%
	Long Term Liabilities
	Long Term Portion of mortgage				$               231,900	49.9%
	Total Long Term Liabilities				$               231,900	49.9%
	(2) TOTAL LIABILITIES				$               247,100	53.1%
	Net Worth (1) - (2)				$               217,915	46.9%
	TOTAL LIABILITIES and NET WORTH				$               465,015	100.0%