As discussed in the All About You feature, in order to evaluate your personal financial position, you need to prepare a personal balance sheet. Complete the following table reflecting your current financial position:

Amount owed on student loan (long-term)

Balance in chequing account

Automobile

Balance on automobile loan (short-term)

Balance on automobile loan (long-term)

Computer and accessories

Clothes and furniture

Balance owed on credit cards

Other

Instructions

a.

Prepare a personal balance sheet using the format you have learned for a balance sheet for a proprietorship. For the Capital account, use Personal Equity (Deficit).

b.

Assume that, instead of borrowing to cover the cost of tuition, you earn $8,000 working during the summer and that after paying for your tuition you have $2,000 in your chequing account. What is the impact on your Personal Equity (Deficit) if the cost of the tuition is considered an expense?