Statement of changes in net worth

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Reference no: EM131002189

For Bob and Sue, the changes in net worth for the year ended December 31, 2008, follow:

Realized increases in net worth:

Salary $ 60,000

Dividend income 2,500

Interest income 2,000

Gain on sale of marketable securities 500

Realized decreases in net worth:

Income taxes 20,000

Interest expense 6,000

Personal expenditures 29,000

Unrealized increases in net worth:

Stock options	3,000
Land	7,000
Residence	5,000
Unrealized decreases in net worth:
Boat	3,000
Jewelry	1,000
Furnishings	4,000
Estimated income taxes on the differences
between the estimated current values of
assets and the estimated current amounts
of liabilities and their tax bases	15,000
Net worth at the beginning of year	150,000

Required:

a. Prepare a statement of changes in net worth for the year ended December 31, 2008.

b. Comment on the statement of changes in net worth.

Reference no: EM131002189

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