Appendix I
Review Exercise Solutions
385
Appendix I
REVIEW EXERCISE SOLUTIONS
Chapter 1 Review Exercise—Solutions
T-account Worksheet
Personal Balance Sheet
As at January 31, 2016
Personal Income Statement
For the Month Ended January 31, 2016
ASSETS (what we own)
LIABILITIES (what we owe)
Opening
Balance
Opening
Balance
CONTENTS OF HOME
HOUSE
+
–
+
–
INCREASE
DECREASE
INCREASE
DECREASE
CASH
UNPAID ACCOUNTS
REVENUE
CLOTHING EXPENSE
ENTERTAINMENT EXPENSE
FOOD EXPENSE
MAINTENANCE EXPENSE
UTILITIES EXPENSE
MORTGAGE
NETWORTH
+
–
+
–
+
–
+
–
+
–
+
–
+
–
+
–
+
–
+
–
INCREASE
DECREASE DECREASE
INCREASE
DECREASE
INCREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
INCREASE
DECREASE
DECREASE
INCREASE
DECREASE
INCREASE
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
LESS EXPENSES
Total Revenue
Less: Total Expenses
Equals Surplus (Deficit)
2,000
300
600
150
1.
2.
8.
9.
3.
4.
5.
6.
7.
300
200
100
500
100
$ , 0 4 85
$ ,3 000
$3,000
$100,000
$ , 100 000
$70,000
$ ,70 000
$36,700
$ ,36 750
8.
9.
600
150
1.
2.
2,000
300
$ , 0 2 30
5.
100
$100
4.
200
$200
3.
300
$300
6.
500
$500
7.
100
$100
$1 ,
$ ,
,
07 850
70 000
37 850
$107,850
Total Assets
Total Liabilities
Net Worth*
*Ending Net Worth = Beginning NetWorth + Capital + Surplus (Deficit)
$37,850 = $36,000 + $750 + $1,100
$
,
$ ,
2,300
1 200
1 100
$3,000
