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#4

#4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Budgeting Worksheet C–Create a Short-Term Budget Worksheet Some people spend their incomes without thinking of what they are doing or whether their buying decisions make much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments. However, beyond these large and regular expenditures, things can get kind of “fuzzy." It is not uncommon for people to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to this problem, but it is hard to do when you're not really aware of where your money goes. To take control of your financial situation, you should first create a series of short-term budget worksheets. These are documents that record all income and spending that takes place over a specific period of time, most often one month. When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in cach worksheet. Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow. Gretchen's Short-Term Budget Worksheet Income Spending Date Source Amount Date Purpose Amount 6/07/- wages $423.52 6/03/20 new sweater $ 33.86 6/09/- birthday gift 50.00 6/12/20 car insurance 48.29 6/21/- wages 423.52 6/15/20 rent 350.00 6/23/- babysitting job 25.00 6/23/20 credit card bill 296.04 6/30/- savings interest 8.92 6/25/20 telephone bill 53.41 6/26/20 groceries 69.30 6/29/20 doctor's visit 50.00 Totals $930.96 $900.90 1. How much was Gretchen able to save in June? 2. Which sources of her income may not be the same from month to month? 3. Which types of spending might not be the same from month to month? 4. Why would a series of short-term budget worksheets be needed to develop a long-term budget?
Transcribed Image Text:Budgeting Worksheet C–Create a Short-Term Budget Worksheet Some people spend their incomes without thinking of what they are doing or whether their buying decisions make much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments. However, beyond these large and regular expenditures, things can get kind of “fuzzy." It is not uncommon for people to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to this problem, but it is hard to do when you're not really aware of where your money goes. To take control of your financial situation, you should first create a series of short-term budget worksheets. These are documents that record all income and spending that takes place over a specific period of time, most often one month. When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in cach worksheet. Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow. Gretchen's Short-Term Budget Worksheet Income Spending Date Source Amount Date Purpose Amount 6/07/- wages $423.52 6/03/20 new sweater $ 33.86 6/09/- birthday gift 50.00 6/12/20 car insurance 48.29 6/21/- wages 423.52 6/15/20 rent 350.00 6/23/- babysitting job 25.00 6/23/20 credit card bill 296.04 6/30/- savings interest 8.92 6/25/20 telephone bill 53.41 6/26/20 groceries 69.30 6/29/20 doctor's visit 50.00 Totals $930.96 $900.90 1. How much was Gretchen able to save in June? 2. Which sources of her income may not be the same from month to month? 3. Which types of spending might not be the same from month to month? 4. Why would a series of short-term budget worksheets be needed to develop a long-term budget?
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