User Account

All Pages

What ashley and jason each earned during october

Assignment Help Accounting Basics
Reference no: EM13880251

On September 30, Ashley and Jason started arguing about who is better off. Jason said he was better off because he owned a PlayStation console that he bought last year for $ 250. He figures that, if needed, he could sell it to a friend for $ 180. Ashley argued that she was better off because she had $ 1,000 cash in her bank account and a piece of art that she bought two years ago for $ 800 but could now probably sell for $ 1,400. Jason countered that Ashley still owed $ 250 on a loan and that Jason's dad promised to buy him a Porsche if he does really well in his accounting class. Jason said he had $ 6,000 cash in his bank account right now because he just received a $ 4,800 student loan. Ashley knows that Jason also owes a tuition installment of $ 800 for this term.

Ashley and Jason met again in early November. They asked how each other was doing. Ashley claimed that she'd become much more successful than Jason. She had a part- time job, where she earned $ 1,500 per month. Jason laughed at Ashley because he had won $ 1,950 on a lottery ticket he bought in October, and that was merely for the work  of standing in line for a minute. It was just what he needed because his apartment costs $ 800 each month. Ashley, on the other hand, pays $ 470 for her share of the rent. Both Ashley and Jason have other normal living costs that total $ 950 each month.

1. Prepare a financial report that compares what Ashley and Jason each owns and owes on September 30. Make a list of any decisions you had to make when preparing your report.

2. In a written report, identify and justify which of the two characters is better off. If you were a creditor, to whom would you rather lend money?

3. Prepare a report that compares what Ashley and Jason each earned during October. Make a list of any decisions you had to make when preparing your report.

4. In a written report, identify and justify which of the two characters is more successful. If you were a creditor considering a three- year loan to one of these characters, to whom would you rather lend money?

Reference no: EM13880251

Questions Cloud

Pretax accounting income and taxable income : Arndt, Inc., reported the following for 2013 and 2014 ($ in millions):
What is the expected profit of a direct broadway opening : What is the expected overall profit from previewing the show out of town? Is this more profitable than opening on Broadway directly?
Hedonism brief explanation of the history of the theory : Hedonism brief explanation of the history of the theory
Evaluate measures used by governments and central banks : Evaluate how business environment is influenced by government economic policy which may be identified through your application of economic theory - Critically evaluate measures used by governments and central banks to manage the economies of their ..
What ashley and jason each earned during october : Prepare a financial report that compares what Ashley and Jason each owns and owes on September 30. Make a list of any decisions you had to make when preparing your report. Prepare a report that compares what Ashley and Jason each earned during Octobe..
Make a suggestion for improving the methods for valuing : Make a suggestion for improving the methods for valuing derivatives so that the reporting becomes more transparent for investors.
Which action gives better chance of finding the grand prize : Now you must decide: Do you stick with your original choice, curtain 3, or switch to curtain 1? Which action gives you the better chance of finding the grand prize?
Estimate the unlevered beta for time warner : 2.It is 1996 (humor me). Time Warner Inc., has a beta of 1.75. Part of the reason for the high beta is the debt left over from the leveraged buyout of Time by Warner in 1989 with debt amounting to $10 billion in 1995. The market value of equity was a..
Start paying dividends in the near future : Alphabet class C stock will start paying dividends in the near future because of all of the cash flow that it generates (coupled with a nearly $70 billion cash balance). When pressed on the issue, Frank made a forecast that Alphabet will start paying..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Emerging trends in accounting

Assume that actual cash inflows turn out to be $91,000 per year. Determine the amount of Mr. Holt's bonus if the original computation of net present value were based on $90,000 versus $70,000.

  Calculate reid & company''s cost of goods sold

Reid & Company uses the periodic inventory system.

  What amount of organization expense should be reported

Palmiero bought a franchise from Dougherty Co. on January 1, 2011, for $350,000. The carrying amount of the franchise on Dougherty's books on January 1, 2011, was $500,000.

  The aicpa code of professional conduct

In this Discussion, you will be able to familiarize yourself with the rules that govern CPAs. Understanding these rules helps to ensure you provide accounting services to your clients with sound ethical and legal practices.

  Determine which alternative could sustain greater decline

determine which alternative could sustain the greater decline in sales before operating at a loss. Computerized SystemManual System.

  Delta corporations corporate charter authorizes the company

delta corporations corporate charter authorizes the company to sell 450000000 shares of 1.50 par common stock. as of

  Compute the net operating income

Compute the net operating income - assuming that the company uses absorption costing, compute the net operating income. Show computations.

  Accounting engagement for acme company

CPA Smith completed an accounting engagement for the ACME Company on December 20, 20X1, and sent ACME a bill for $5,000 which ACME paid on January 25, 20X2. CPA Smith uses the cash basis of accounting

  Deloise company purchased a new machine on october 1 2012

deloise company purchased a new machine on october 1 2012 at a cost of 92401. the company estimated that the machine

  Prepare the journal entries to record depreciation expense

holtzman company is in the process of preparing its financial statements for 2012. assume that no entries for

  Significant pattern of differential treatment

Other hand, the Hispanic/Anglo results were comparable to the black/white results discussed earlier, with no significant pattern of differential treatment favoring either Hispanics or Anglos. How much were testers told they could afford?

  Calculating loan rates

Consider the solving of applied interest problems that you read about this week. Now, apply your knowledge of these models to a practical problem.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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