Academy for Jewish Religion T Account Records Case Study After taking the first part of this financial accounting course, you excitedly tell a friend what

Academy for Jewish Religion T Account Records Case Study After taking the first part of this financial accounting course, you excitedly tell a friend 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. Your friend 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.

1. He had $950 in his bank account at the beginning of the month.

2. He had a $1,200 balance on his credit card at the beginning of the month.

3. He estimates that he had about $3,000 worth of “stuff” in his apartment at the beginning of the month (TV, sound system, computer and furniture).

4. He deposited his salary of $1,500.

5. He paid in advance for three months of rent with $1,350 cash.

6. He paid $600 to pay off a portion of the credit card bill.

7. He purchased a new video game system for $350 with his credit card.

8. He bought $120 worth of food with cash.

9. He got hired at a second job. He will start next month and will earn $800 per month.

10. He spent $250 cash on movies, stage plays and Dave and Buster’s.

11. He lived in his apartment for one of the three months he already paid for (see #5). ACC 216
CH 1 Case Study
CS-1 on workbook pp 42-44
YOUR NAME HERE
Personal Balance Sheet
Personal Income Statement
ASSETS (what we OWN)
LIABILITIES (what we owe)
Cash
Unpaid liabilities
Decrease
Increase
Increase
Decrease
+
Opening
–
–
REVENUE
Revenue
Decrease
+
Increase
–
+
Opening
Ending
LESS EXPENSES
Ending
Ending
Food Expense
Increase
Contents of home
Increase
Decrease
+
Opening
Decrease
+
–
Ending
Rent Expense
Increase
Decrease
+
–
Ending
Prepaid rent
Increase
+
Opening
NET WORTH
Decrease
Decrease
–
Increase
Opening
Net Income
Ending
Ending
+
Ending
Entertainment Expense
Increase
Decrease
+
–
Ending
Total Assets
Total Revenue
Total Liabilities
Less Total Expenses
Net Worth
Surplus (Deficit)
Let’s skip the writing in Parts a through i. We’ll focus here on the accounts, lefts & rights and final totals.
Case study
After taking the first part of this financial accounting course, you excitedly tell a friend 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. Your friend 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.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
He had $950 in his bank account at the beginning of the month.
He had a $1,200 balance on his credit card at the beginning of the month.
He estimates that he had about $3,000 worth of “stuff” in his apartment at the beginning of the month
(TV, sound system, computer and furniture).
He deposited his salary of $1,500.
He paid in advance for three months of rent with $1,350 cash.
He paid $600 to pay off a portion of the credit card bill.
He purchased a new video game system for $350 with his credit card.
He bought $120 worth of food with cash.
He got hired at a second job. He will start next month and will earn $800 per month.
He spent $250 cash on movies, stage plays and Dave and Buster’s.
He lived in his apartment for one of the three months he already paid for (see #5).
+
total
CasH
1.
950
4.
1,500
−
5.
−
1,350
6.
600
8.
120
10.
250
unPaiD aCCounts
6.
$130
total
−
required
600
+
2.
1,200
7.
350
$950
net WortH
+
5.
1,350
3.
3,000
8.
120
4.
1,500
10.
250
7.
350
9.
800
total
$3,930

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