After taking the first part of this financial accounting course, you excitedly tell your friend Jordan...

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After taking the first part of this financial accounting course, you excitedly tell your friend Jordan what you have learned. You tell him about assets, liabilities and net worth and how they increase and decrease in value with every financial transaction. Jordan decides to start getting organized and apply accounting principles to his personal finances. He compiles everything that he thinks is important and calculates his net worth. He then asks you to look over what he has done to make sure it is correct. His important financial items are listed below, along with his version of the T-account records. He had $1,000 in his bank account at the beginning of the month. He had a $2,300 balance on his credit card at the beginning of the month. He estimates that he had about $2,000 worth of "stuff" in his apartment at the beginning of the month (TV, sound system, computer and furniture). 4. He deposited his salary of $2,500. 5. He paid his rent for the month with $1,400 cash. He paid $1,300 to pay off a portion of the credit card bill. 1. 2. 3. 6. 7. He purchased a new video game system for $550 with his credit card. 8. He bought $90 worth of food with cash. 9. He got hired at a second job. He will start next month and will earn $1,000 per month. 10. He spent $300 cash on movies, stage plays and other entertainment. 1. 4. Total CASH 1,000 2,500 $410 5. 6. 8. 10. 1,400 1,300 90 300 6. 5. 8. 10. UNPAID ACCOUNTS 1,300 NET WORTH 1,400 90 300 2. Total 7. Required a) What are some immediate problems that you see with what Jordan has prepared? 3. 4. 7. 9. Total 2,300 550 $1,550 2,000 2,500 550 1,000 $4,260 b) With all the problems you see, Jordan asks you to show him what the correct records should look like. Use the templates below to record the transactions c) Why did you use all of these accounts when I only used three (Cash, Unpaid Accounts and Net Worth)? Opening 1000 Opening TOTAL ASSETS TOTAL LIABILITIES NET WORTH INCREASE DECREASE DECREASE Opening INCREASE NET WORTH Opening INCREASE DECREASE TOTAL REVENUE LESS TOTAL EXPENSES SURPLUS (DEFICIT INCREASE DECREASE After taking the first part of this financial accounting course, you excitedly tell your friend Jordan what you have learned. You tell him about assets, liabilities and net worth and how they increase and decrease in value with every financial transaction. Jordan decides to start getting organized and apply accounting principles to his personal finances. He compiles everything that he thinks is important and calculates his net worth. He then asks you to look over what he has done to make sure it is correct. His important financial items are listed below, along with his version of the T-account records. He had $1,000 in his bank account at the beginning of the month. He had a $2,300 balance on his credit card at the beginning of the month. He estimates that he had about $2,000 worth of "stuff" in his apartment at the beginning of the month (TV, sound system, computer and furniture). 4. He deposited his salary of $2,500. 5. He paid his rent for the month with $1,400 cash. He paid $1,300 to pay off a portion of the credit card bill. 1. 2. 3. 6. 7. He purchased a new video game system for $550 with his credit card. 8. He bought $90 worth of food with cash. 9. He got hired at a second job. He will start next month and will earn $1,000 per month. 10. He spent $300 cash on movies, stage plays and other entertainment. 1. 4. Total CASH 1,000 2,500 $410 5. 6. 8. 10. 1,400 1,300 90 300 6. 5. 8. 10. UNPAID ACCOUNTS 1,300 NET WORTH 1,400 90 300 2. Total 7. Required a) What are some immediate problems that you see with what Jordan has prepared? 3. 4. 7. 9. Total 2,300 550 $1,550 2,000 2,500 550 1,000 $4,260 b) With all the problems you see, Jordan asks you to show him what the correct records should look like. Use the templates below to record the transactions c) Why did you use all of these accounts when I only used three (Cash, Unpaid Accounts and Net Worth)? Opening 1000 Opening TOTAL ASSETS TOTAL LIABILITIES NET WORTH INCREASE DECREASE DECREASE Opening INCREASE NET WORTH Opening INCREASE DECREASE TOTAL REVENUE LESS TOTAL EXPENSES SURPLUS (DEFICIT INCREASE DECREASE

Answer rating: 100% (QA)

Problems with Jordans Records a There are several issues with how Jordan recorded his finances Missing Accounts He only uses three accounts Cash Unpai... View the full answer