Reference no: EM132460660

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 develop 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)                     $4,900

Balance in checking account                                                    1,400

Certificate of deposit (6-month)                                               3,000

Annual earnings from part-time job                                          11,000

Automobile                                                                           7,100

Balance on automobile loan (current portion)                              1,420

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

Home computer                                                                       890

Amount owed to you by younger brother                                      340

Balance in money market account                                             1,890

Annual tuition                                                                        6,000

Video and stereo equipment                                                     1,260

Balance owed on credit card (current portion)                               100

Balance owed on credit card (long-term portion)                         1,590

Question 1: Develop 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.