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. 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 12,800 Automobile 7,000 Balance on automobile loan (current portion) 1,500 Balance on automobile loan (long-term portion) 4,000 Home computer 1,100 Amount owed to you by younger brother 300 Balance in money market account 1,800 Annual tuition 6,400 Video and stereo equipment T2350 Balance owed on credit card (current portion) 190 Balance owed on credit card (long-term portion) 1,850 Instructions Prepare a personal balance sheet using the format you have learned for a classified balance sheet for a company. For the equity account, use Owner's Equity.

FASB Codification Activity