Companies prepare balance sheets in order to know their financial position at a specific point in time. This enables them (and other users) 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 11,300 Automobile 7,000 Balance on automobile loan (current portion) 1,500 Balance on automobile loan (long-term portion) 4,000 Home computer 800 Amount owed to you by younger brother 300 Balance in money market account 1,800 Annual tuition 6,400 Video and stereo equipment 1,350 Balance owed on credit card (current portion) 150 Balance owed on credit card (long-term portion) 1,650 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. Use the link above to submit a single Word or Excel file with your balance sheet.
Answer:
Personal
Balance Sheet
As at xxxxxxx
Non-Current Assets Amount in $
Equipment 1,350
Computer 800
Automobile 7,000
Current Assets
Bank Balance 1,200
Certificate of Deposit 3,000
Loan receivable from brother 300
Money Market Account 1,800
Total Assets 15,450
Owner's Equity & Liabilities
Long Term Liabilities A
Auto loan-long term portion 4,000
Credit Card 1,650
Student Loan 5,000
Short Term Liabilities B
Auto Loan-Current Portion 1,500
Credit Card-Current Portion 150
Owner's Equity C 3,150
Total Owner's Equity & Liabilities D=A+B+C 15,450
Explanation:
The owners equity is taken as balancing figure s we are unaware of net profits retained during the year or net saving i.e net of expenses savings are not available.
PLEASE APPRECAITE THE WORK
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