prepare a personal balance sheet using the format you have learned for a classified 581587

Companies prepare balance sheets in order to know their financial position at a specific point in time. This enables them to make a comparison to their position at previous points in time, and gives them a basis for planning for the future. As discussed in the All About You feature in this chapter, in order to evaluate your financial position you need to prepare a personal balance sheet. Assume that you have compiled the following information regarding your finances. (Hint: Some of the items might not be used in your personal balance sheet.)

Amount owed on student loan balance (long term)

$5,000

Balance in checking account

1,200

Certificate of deposit (6 month)

3,000

Annual earnings from part time job

11,300

Automobile

7,000

Balance on automobile loan (current portion)

1,500

Balance on automobile loan (long term portion)

4,000

Home computer

800

Amount owed to you by younger brother

300

Balance in money market account

1,800

Annual tuition

6,400

Video and stereo equipment

1,250

Balance owed on credit card (current portion)

150

Balance owed on credit card (long term portion)

1,650

Instructions

Prepare a personal balance sheet using the format you have learned for a classified balance sheet for a company. For the owner’s equity account, use M. Y. Own, Capital.