create the journal entries a) (8 points) You started last year with the following initial financial portfolio:

create the journal entries

Transcribed Image Text:

a) (8 points) You started last year with the following initial financial portfolio: Stocks, 3% dividend yield $600,000 $300,000 Municipal Bonds, 2% yield @ par Cash (no interest) $100,000 $1,000,000 Financial Net Worth Last year you earned $350,000 in wages and spent $200,000. You pay 30% ordinary income taxes on your wages and 20% on your dividends and capital gains. Your municipal bonds (untaxed) are still at par, while your stock portfolio had a fully realized capital gain of 12%, which has been reinvested in the stock market. Your wages, bond and stock yields go into your cash account. a) (8 points) You started last year with the following initial financial portfolio: Stocks, 3% dividend yield $600,000 $300,000 Municipal Bonds, 2% yield @ par Cash (no interest) $100,000 $1,000,000 Financial Net Worth Last year you earned $350,000 in wages and spent $200,000. You pay 30% ordinary income taxes on your wages and 20% on your dividends and capital gains. Your municipal bonds (untaxed) are still at par, while your stock portfolio had a fully realized capital gain of 12%, which has been reinvested in the stock market. Your wages, bond and stock yields go into your cash account.

Answer rating: 100% (QA)

Calculating Your Financial Net Worth after One Year 1 Calculate income from various sources Stocks D... View the full answer