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. As discussed in the All About You feature, in this chapter, 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                                                      1,250
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 classifi ed balance sheet for a company. For the capital account, use Owner’s Capital.