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 can 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) $4,800

Balance in checking account 1,300

Certificate of deposit (6-month) 3,300

Annual earnings from part-time job 12,000

Automobile 7,200

Balance on automobile loan (current portion) 1,450

Balance on automobile loan (long-term portion) 3,600

Home computer 840

Amount owed to you by younger brother 330

Balance in money market account 1,990

Annual tuition 6,900

Video and stereo equipment 1,340

Balance owed on credit card (current portion) 100

Balance owed on credit card (long-term portion) 1,640

- Prepare a personal balance sheet using the format you have learned for a classified balance sheet for a company. For the equity account, use M. Y. Own, Capital. (List Current Assets in order of liquidity.)

heir I System Announcements Liabilities and Owner's Equity Current Liabilities 1,450 Current Portion of Automobile Loan $ 100 Current Portion of Credit Card Payable - 1,550 Total Current Liabilities Long-term Liabilities 3,600 Automobile Loan -3-3 $4,800 Student Loan 1,640 Credit Card Payable 10,040 Total Long-term Liabilities Equity 4,710 Equity 16,300 $ Total Liabilities and Equity W mm 30 OCT 15