Prepare a statement of financial condition

Assignment Help Accounting Basics
Reference no: EM13141828

A personal statement of financial condition dated December 31, 2008, is to be prepared for Wilhelm Holz. He provides the following information for your use in preparing the statements. All amounts are as of December 31, 2008.

1) Cash on hand and in bank is $4,000.

2) Investments costing $30,000 have a market value of $78,000.

3) His personal residence cost $150,000 ten years ago, and is currently worth $320,000.

4) The payoff balance of his home mortgage is $80,000.

5) The fair value of his 401(k) retirement account is $700,000. All withdrawals from the account will be fully taxable.

6) Amounts due on credit card debt total $5,000.

7) Estimated income taxes on his calendar 2008 earnings amount to $15,000. Taxes withheld in 2008 were $14,000.

8) Assume an income tax rate of 30 percent.

Required: Prepare a statement of financial condition for Mr. Holz as of December 31, 2008. Assume any gain on subsequent sale of the residence will not be tax-exempt.

Reference no: EM13141828

Determining loss on repossession

No further collections could be made on an account with a balance of $18,000. It was estimated that the repossessed furniture could be sold as is for $5,400, or for $6,300 i

Opinion regarding potential liability

Teddy's Supplies' CEO has asked you to advise him on the facts of the case and your opinion of their potential liability. He wants to settle the case. Write a memo to him th

Suspended passive loss

Several years ago, Joy acquired a passive activity. Until 2004, the activity was profitable. Joy's at-risk amount at the beginning of 2004 was $300,000. The activity produce

Analyzing and close a commerical loan

Management estimates that it costs $500 to analyze and close a commerical loan. This amount has been included in the $250,000 of inderict costs. How much of the $250,000 ind

Company''s current performance

This assessment will require you to conduct financial statement analysis based on your financial ratio calculations as well as your observation about the company executives' e

Problem regarding personal property and business property

John's car was completely destroyed by fire in 2010. Its cost and fair market value were $8,000. John's claim against insurance was $3,000 and was NOT made until 2011. The f

Receipt of partnership interest in current year

Tina and Randy formed the TR Partnership four years ago. Because they decided the company needed some expertise in multimedia presentations, they offered Susan a 1/3 interes

Prepare the journal entry to record the purchase

Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purcha

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd