As discussed in the All About You feature, in order to evaluate your personal financial position, you
Question:
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:
The amount owed on a student loan (long-term)
Balance in chequing account Automobile
The balance on automobile loan (short-term)
The 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?
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak