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  Microsoft Business Planner          
               
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  Creating a Personal Balance Sheet          
               
               
  Creating a Personal Balance Sheet  
  This exercise will help you consolidate your understanding of the components of the balance sheet, by focusing on your personal financial position.
Start by summarizing your financial position. List all your assets and liabilities in the table below using the Terry Brown example as your guide (the headings are based on that example). If necessary, add extra rows by selecting the row labelled "Other", then clicking Insert on the Excel menu bar, and then clicking Rows. When you have completed your list, click on the tab "Stage 2".
 
               
  Note: If you save this template as a workbook, note the workbook's file name and location. To edit the workbook next time, you must open it using Excel. Every time you open this template from Business Planner, a new workbook is created.  
               
            Colin Barrow 1998, Accounting: Financial Management for the Small Business,  
            published by Kogan Page.  
               
  Financial Position   Amount Willing to Sell        
               
           
  TRADITIONAL ASSETS            
  Cash $42 $42        
  House $0 $0        
  Mortgage $0 $0        
  Money Owed to You $32 $32        
  Checking - Citibank $120 $120 (Calculated w/%)    
  Savings - Trad. & new IRA - Citibank $3,420 $0 ($855) $2,565 remaining
  Checking - Washington Mutual $14 $14        
  Car $1,000 $0        
  Fidelity Investments - Roth IRA $4,624 $0 $0 $4,624 remaining (Est.)
  TOTAL ASSETS $9,252 $208        
               
  DEBT / Credit Cards            
  Citibank Overdraft ($2,367) ($2,367) 15-Jan $13 19.9%  
  Credit Cards            
  AMEX (daweber4801) ($10,250) ($10,250) 15-Jan $205 8.0%  
  CCCS (moneymanagement.org)     15-Jan $22  
  AT&T ($966) ($966) 15-Jan $55 9.9%  
  MBNA ($1,800) ($1,800)   $130 10.0%  
  Discover Card ($5,602) ($5,602) 15-Jan $105 12.9%  
  Cal State 9 Credit Union - Card $118 $118 15-Jan $0    
  Cal State 9 Credit Union - Savings $12 $12 15-Jan $0    
  San Diego Credit Union       $0    
  Credit Card / Debt Total ($20,855) ($20,855)    
        Checked      
  Income - EDD (740 x 2) = $1480 $0 $0 15-Jan $0            
Internet - Juno ($10) ($10) 15-Jan $10
  Cell Phone ($73) ($175) 15-Jan $0    
  Utl (Gas/Elec- $30), (phone-$15), & (stuff-$25) ($70) ($70) 15-Jan $70    
  Rent ($75) ($75) 15-Jan $75    
  Health Insurance ($243) ($243) 15-Jan $243    
  Insurance - car (due in May)       $50    
  Insurance - renters & earthquake ($245) ($245)   $40 12.0%  
  Dentist ($340) ($340) 15-Jan $30 12.0%  
  Deposits (Two roommates - $750 ea) ($1,500) ($1,500)        
  Amount owed to previous roomate (Chris) ($75) ($75)        
  Taxes (State w/penalty? + Federal) ($3,400) ($3,400)   $200 19.0%  
  Complete Debt ($26,886) ($26,988)   $1,248 13.0% (average % rate of debt)
  Roth IRA (with penalties) est $4,624 $4,624   (pay monthly to bills)  
  Citibank Trad. New IRA (with penalties) $2,394 $2,565        
  total amount to be used for debt: $7,018 $7,189        
  Debt - minus IRAs = ($19,868) ($19,799)      
      (cancelling cell)        
  ASSETS + DEBTS            
  Jewellery and Paintings $1,000 $1,000        
  LivingRoom/TV Furniture (Couch [$50], 2 tv tables [$75], black wood cd rack [$65], two matching red table lamps [$140], ) $330 $35        
  Kitchen Furniture (antique kitchen table [$450], kitchen table/4 chairs [$75], restaurant cart [$125]) $650 $450        
  Bedroom Furniture (Queen bedframe [$42] welded tall bedrame [$75], mahogany overlay dresser [$450], wood bookcase [$125], flat rug [$25], closet [$125], hope chest [$150], floor lamp {$75], antique bedside lamp [$45], new bedside lamp [$10], persian rug [already stated], sewing box w/supplies [$50], raw burl headboard [$225], 2 afgans, made by Gma [$45], goosedown comforter - recent Xmas present [$295], comforter [$10], velvet drape [$55], plush blanket [$25], woven head hat rack [$45], dreamcatcher [$35], mosquito netting [$40], patio doors [$70], window [$50], statue of Ganesh [already stated], ) $50        
  Bicycle (RockHopper - Modified with rack and foot petal covers) $2,300 $2,300        
  Stained Glass & Supplies (grinder [$85], light table [$75], slide viewer [$23], 3 cutting tools [$15 ea.], glass breaker [$17], fluorescent table lamp [$20], incandescent table lamp [$20], haligen table lamp [$45], 2 rolls 60/40 lead [$25], 5 rolls copper foil [$45], 1 6-ft strip U-lead [$3], 5 books of patterns [$15 ea.], 6 3x4 sheets of glass [$20 ea.], 120 1.5x1.5 sheets of glass [$12 ea.], two bins of smaller pieces [est. $150 each], 2 lamp/lead patterns [$12 ea.], setting up board [$25], drafting board [$125], soldier [$25], ) $2,000 $1,500        
  Horse equipment (Austrialian stock saddle w/English leathers [$250], 2nd set English leathers [$75], horse bridle sized for Arab [$25], Professional Choice Dressage saddlepad for stock saddle [$120], Prof. Choice English saddle pad [$75], {$545 now }etc) $545 $520        
  SM Toys (Wooden cross [$75-cost to rebuild], Hitachi Magic Wand [$65], ) $500 $450        
  Clothes $2,000 $50        
  Computer software (3D Studio Max, Microsoft Office Suite[Access, Excel, Outlook, PowerPoint, Scheduler, Word], Windows '98, full Norton System Utilities, full Adobe Acrobat, Macromedia Suite [Dreamweaver 4, Flash, Fireworks], Act 4, Adobe Photoshop, Adobe Illustrator, QuarkExpress 5.0, and others) $15,000 $0        
  Computer (Gateway [4/10/98]) $750 $0        
  Home electronics $250 $50        
  Books $2,000 $50        
  Persian Rug $175 $0        
  Sheepskin Rug (2) $200 $50        
  Artwork (statue of Ganesh) $50 $0        
  Kitchen appliances (stove, refridgerator, coffee/espresso machine, bread machine, juicer, toaster, microwave, rice cooker, crockpot, sandwich maker, blender) $750 $50        
  Food $500 $0        
  Household appliances (floor fan, oil heater, sm space heater, hand sander, portable stereo, five outlet strips, 2 cordless phones, two answering machines, 19-in TV, two VCRs, 6-disk CD changer, portable sewing machine) $250 $0        
  Musical Instruments (2 violins - one antique & needs setup [$1,000], one more standard sound & ready to play [$2,000], case [$65], bow [$60]) $3,125 $1,000        
  Guns (1 antique handgun unable to shoot[$65], 1 single-shot bolt-action 22 rifle, needs cleaning [$120]) $185 $185        
  Knitting Supplies (30 skeins yarn [$4 ea.], circular needles [$75], straight [$75]) $270 $0        
               
  Other            
  Sub-total $32,830 $7,740        
               
  Final $42,126 ($19,040)        
  Value Actual Value
What to do? Keep IRAs - Option a) Debt of $26,988: (moneymanagement.org - chart) By paying off your debt now, you will save $3,806 in interest costs. In order to pay off your $26,988 balance in the desired 24 months, you'll need to make monthly payments of $1,283 and make no additional credit card charges. Otherwise, given your anticipated payments of $1,248 and your anticipated charges of $9 you'll repay your outstanding balance in 25 months.
(note: none factors Income tax on sale) IRAs at 30% - Option b) Debt of $21,357: (by selling off my IRAs @30% penalty) (moneymanagement.org - chart) By paying off your debt now, you will save $3,012 in interest costs. (That's $800 more saved if I sell off my IRAs). In order to pay off your $21,357 balance in the desired 24 months, you'll need to make monthly payments of $1,016 and make no additional credit card charges. Otherwise, given your anticipated payments of $1,248 and your anticipated charges of $9 you'll repay your outstanding balance in 20 months.
IRAs - Option c) Debt of $19,970: (by selling off my IRAs @30% & 0% (roth) penalty) By paying off your debt now, you will save $2,816 in interest costs. In order to pay off your $19,970 balance in the desired 24 months, you'll need to make monthly payments of $950 and make no additional credit card charges. Otherwise, given your anticipated payments of $1,248 and your anticipated charges of $9 you'll repay your outstanding balance in 18 months.