Reference no: EM133096343

Question - On September 30, Laina and Johannes started arguing about who is better off. Johannes said he was better off because he owned a PlayStation console that he bought last year for N$3 000. He figures that, if needed, he could sell it to a friend for N$2 800. Laina argued that she was better off because she had N$10 000 cash in her bank account and a vintage car that she bought two years ago for N$8 000 but could now sell for N$14 000. Johannes countered that Laina still owed $2 500 on her car loan and that Johannes's dad promised to buy him a Porsche if he does really well in his accounting class. Johannes said he had N$60 000 cash in his bank account right now because he just received a N$48 000 student loan. Laina knows that Johannes also owes a tuition installment of N$8 000 for this semester.

Required - Prepare a financial report that compares what Laina and Johannes each own and owe on September 30. Make a list of any decisions you had to make when preparing your report.