PRE PA RIN G PE RSO N AL B ALAN CE SH E E T. US E WO R SH E E T 2.1. Ella Campbell’s banker has asked her to submit a personal balance sheet as of June 30, 2017, in support of an application for a $6,000 home improvement loan.

She comes to you for help in preparing it. So far, she has made the following list of her assets and liabilities as of June 30, 2017:

Asset/Liability Sub-total Cash on hand $70 Balance in checking account 180 Balance in money market deposit account with Southwest Savings 650 900 Bills outstanding:

Telephone $20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220 Taxes 400 Insurance 220 $1,300 Condo and property 68,000 Condo mortgage loan 52,000 Automobile: 2013 Honda Civic 12,380 Installment loan balances:

Auto loans 3,000 Furniture loan 500 3,500 Personal property:
Furniture 1,050 Clothing 900 1,950 Investments:
U.S. government savings bonds 500 Stock of Delta Corp. 3,000 3,500 From the data given, prepare Ella Campbell’s balance sheet, dated June 30, 2017 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors:

(a) solvency,

(b) liquidity, and

(c) equity in her dominant asset. L01