1. Balance sheet preparation Adam and Arin Adams have collected their personal asset and liability...

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1. Balance sheet preparation Adam and Arin Adams have collected their personal asset and liability information and have asked you to put together a balance sheet asof December 31, 2012. The following information is receivedfrom the Adams family.

Cash	$ 300	Retirement funds, IRA	$ 2,000
Checking	3,000	2011 Sebring	15,000
Savings	1,200	2010 Jeep	8,000
IBM stock	2,000	Money market funds	1,200
Auto loan	8,000	Jewelry and artwork	3,000
Mortgage	100,000	Net worth	76,500
Medical bills payable	250	Household furnishings	4,200
Utility bills payable	150	Credit card balance	2,000
Real estate	150,000	Personal loan	3,000

a. Create a personal balance sheet as of December 31, 2012. It should be similar to a corporate balance sheet.

b. What must the total assets of the Adams family be equal to by December 31, 2012?

c. What was their net working capital (NWC) for the year?

2. Financial statement account identification Mark each of the accounts listed in the following table as follows:

a. In column (1), indicate in which statement—income statement (IS) or balance sheet (BS)—the account belongs.

b. In column (2), indicate whether the account is a current asset (CA), current liability (CL), expense (E), fixed asset (FA), long-term debt (LTD), revenue (R), or stockholders’ equity (SE).

	(1)	(2)
Account name	Statement	Type of account
Accounts payable
Accounts receivable
Accruals
Accumulated depreciation
Administrative expense
Buildings
Cash
Common stock (at par)
Cost of goods sold
Depreciation
Equipment
General expense
Interest expense
Inventories
Land
Long-term debts
Machinery
Marketable securities
Notes payable
Operating expense
Paid-in capital in excess of par
Preferred stock
Preferred stock dividends
Retained earnings
Sales revenue
Selling expense
Taxes
Vehicles

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1. Balance sheet preparation Adam and Arin Adams have collected their personal asset and liability information and have asked you to put together a balance sheet asof December 31, 2012. The following...

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