7th Edition

ISBN: 9781118162286

Author: Kimmel, Paul D.

Publisher: John Wiley & Sons Inc

Textbook Question

Chapter 4, Problem 4.9BYP

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 lime and gives them a basis for planning for the future. In order to evaluate your financial position, you can 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

4 Accural Accounting Concepts

4 Accural Accounting Concepts

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)	1.50
Balance owed on credit card (long-term portion)	1,650

Instructions

Prepare a personal balance sheet using the formal you have learned for a classified balance sheet for a company. For the equity account, use M. V. Own, Capital.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 4, Problem 4.8BYP

Chapter 4, Problem 4.1IFRS

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