You are a first-year university student and excited about moving away from home to go to university. You have saved $6,000 form your summer employment and your parents agreed to match that $6,000. In addition, you received a $9,000 student loan. All of this money is intended to last you for the academic year.

At September 1, you had $21,000 cash ($6,000 + $6,000 + $9,000), and a cellphone that cost $200. You have kept all of the receipts for all of your expenditures between September 1 and December 15th. The following is a complete list of your cash receipts.

Expenditure	Amount $
Residence and meal plan fees ($1,100 per month)	4,400
Damage deposit on residence	400
Tuition for September to December	3,500
Textbooks	600
Personal costs (personal items, entertainment, eating out)	1,500
New clothes	1,500
Cellphone monthly costs (total for all 4 months)	250
New Computer	1,000
Travel to go back home at Christmas	450

On December 15, you checked the balance in your bank account and you only have $7,400 cash. You cant sleep because you know residence for the second term will cost you $4,400 and your tuition will cost you $3,500 and you are $500 in the hole before purchasing textbooks of anything else for next term.

You need to figure out where you stand before you can talk to your parents about needing more money for the next term. You try to prepare a trial balance like you learned in the first four lectures, but it does not balance. You are getting more and more worried about what to do next.

Personal Trial Balance December 15, 2018

Account	Debit $	Credit $
Cash	7,800
Clothes	1,500
Cellphone	200
Computer	100
Student Loan		9,000
Personal Equity		12,200
Residence and Meal Expense	4,400
Tuition for September to December	3,500
Personal Costs	1,500
Textbooks for September to December	600
Travel Costs	540
Cellphone Costs	250

Instructions (45 marks)

1. Calculate your personal equity (deficit) at September 1, 2018. (5 marks)
2. Identify the errors in the above trial balance and prepare a corrected trial balance at December 15th, 2018. (8 marks)
3. Calculate your total expenses for the first semester and your personal equity (deficit) at December 15th, 2018. (10 marks)
4. Assume the $200 cellphone you had, the computer purchased, and damage deposit paid are assets, and that the remaining costs are expenses. Did your equity change? If so, by how much? (4 marks)
5. Assuming you will have the same expenses in the second term, will you have enough cash to pay for them? If not, how much are you short? (4 marks)
6. Are there any expenses you might be able to avoid in the second term to save cash? What are they? What did you overspend in the first term? (8 marks)
7. Will it be necessary for you to ask your parents for more money for the next term? If so, how much do you need to ask for? Explain. (6 marks).