1)Using Excel spreadsheet create your own personal budget by month following the
ID: 2523615 • Letter: 1
Question
1)Using Excel spreadsheet create your own personal budget by month following the ACCRUAL basis of accounting 2) Once you complete the ACCRUAL basis budget you will create a CASH basis budget. NOTE Total Net income/loss for both Accrual basis budget and cash basis budget must be equal !!
Note you are following ACCRUAL basis of accouting so Income received in one month that covers the whole year, like a bonus check and/or income tax refunds are spread over each month. Expenses(known as prepaids) like property taxes paid twice a year or car/life insurance paid once a year are also spreadover each month. Some expenses will vary month to month like grocery bills so need to estimate but keep track of how much you actually spend each month so your estimates become more accurate
CASH budget - below you will follow the cash basis for your budget. You need this also to ensure you have enough money to make large payments like car insurance, life insurance, tuition payments etc
Note use SAME FORMAT AS YOUR ACCRUAL BASIS BUDGET BUT NOW YOU ARE FOLLOWING CASH BASIS
The below is a snapshot of what I prepared for the budget on accrual basis. Please let me know if this is correct and how to change it on cash basis.
My Personal Budget ACCRUAL budget Description Jan Feb March April May June July Aug Sept Oct Nov Dec TOTAL REVENUE Pay check $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 5,100 $ 61,200 IRS refunds $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 238 $ 2,856 Bonus checks $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 650 $ 7,800 Gifts $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 165 $ 1,980 TOTAL REVENUE $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 6,153 $ 73,836 Expenses: Rent or Mortgage $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 989 $ 11,868 Property taxes $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 18,132 Electric $ 65 $ 65 $ 65 $ 65 $ 95 $ 95 $ 110 $ 110 $ 95 $ 95 $ 65 $ 65 $ 990 Gas $ 120 $ 120 $ 100 $ 100 $ 80 $ 80 $ 70 $ 70 $ 80 $ 80 $ 100 $ 120 $ 1,120 Water/sewer $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 65 $ 780 Car payments $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 1,380 $ 16,560 Credit card payments $ - TOTAL EXPENSES $ 4,130 $ 4,130 $ 4,110 $ 4,110 $ 4,120 $ 4,120 $ 4,125 $ 4,125 $ 4,120 $ 4,120 $ 4,110 $ 4,130 $ 49,450 total income /(loss) $ 2,023 $ 2,023 $ 2,043 $ 2,043 $ 2,033 $ 2,033 $ 2,028 $ 2,028 $ 2,033 $ 2,033 $ 2,043 $ 2,023 $ 24,386Explanation / Answer
The budget which you have made is correct.
To prepare cash budget your receipts and payments must be written totality and in the month in which actually they are received for paid.
In this case your items like your bonus, IRS refund, Gifts, & property payments must be put in the month in which it has actually received or paid.
If you find this useful, please click on thumbs up.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.