Heidi & Jerry Jones Financial Extracts Heidi & Jerry Jones are recently married.

Question

Heidi & Jerry Jones Financial Extracts Heidi & Jerry Jones are recently married. Below are the extracts from their personal finance affair for the period January 1 to December 31,2014 Heidi & Jerry's combined annual salary 450,000 Utility bills 80,000 Helper 110,000 Insurance 40,000 Motor vehicle maintenance 60,000 Food & clothing 75,000 Entertainment 50,000 Loan Balances due within 1 year 8,046 Currency in Hand 440 Mortgage Loans due after 1 year 190,263 Chequing Account Balance 5,400 Other Deposits in Financial Institutions 15,600 Barita deposits (short term) 6,000 Credit Card Balances (unpaid) ,720 Credit union golden harvest account 36,000 Residence 255,000 Motor Cars 32.100 Jewellery 5,400 Sporting Equipment 1,000 Car Loan Balances due after 1 year Common Stocks in MVL 26,000 Treasury Bills 10,800 Cash Value of Retirement Fund 4,000 Furniture & Household Items 30,000 9.195 Required a) Prepare & income &expenditure a/c for the Jones' showing their contribution marks) to savings 10 b) Prepare the balance sheet for the Jones as at December31 2014 showing: i) value of their liquid assets (5 marks) ii ue of their lifestyle assets 5 marks) ivalue of their investment assets 5 marks) iv) value of their current liabilities 3 marks) v value of their long term liabilities 3 marks) e The couple's net worth (4marks)

Explanation / Answer

a.Income & Expenditure a/c For the Year ending Dec 31, 2014 Heidi & Jerry' s combined salary 450000 Less: Expenses: Utility Bills 80000 Helper 110000 Insurance 40000 MV Maintenance 60000 Food& clothing 75000 Entertainment 50000 Total expenses 415000 Contribution to savings 35000 Balance Sheet for the Jones As at Dec 31, 2014 Liabilities Assets Current Liabilities Liquid assets Loan balances due within 1 year 8046 Currency in hand 440 Credit card balances(unpaid) 1720 Chequing a/c balance 5400 Total Current Liabilities 9766 Cash value of Retirement Fund 41000 Long-term Liabilities Total Liquid assets 46840 Mortgage loans due after 1 year 190263 Lifestyle assets Car loan balances due after 1 Year 9195 Residence 255000 Total Long-term Liabilities 199458 Motor Cars 32100 Net worth Jewellery 5400 Capital (Plug-in) 220516 Sporting Equipment 1000 Contribution to savings 35000 Furniture & Household Items 30000 Total Net worth 255516 Total Lifestyle assets 323500 Investment assets Other Deposist in Financial Institutions 15600 Barita deposits(short-term) 6000 Credit Union Golden harvest a/c 36000 Common stock in MVL 26000 Treasury bills 10800 Investment assets 94400 464740 464740 i. Liquid assets 46840 ii.Lifestyle assets 323500 iii.Investment assets 94400 iv.Current Liabilities 9766 v. Long-term Liabilities 199458 vi. Couple's New worth 255516

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