To solve this problem, we need to check the math in the "BUDGET SUMMARY" section (the top right box) using the numbers provided in the detailed lists on the left and bottom right.
Here is the step-by-step verification:
Step 1: Check Total Income
* Look at the
INCOME section (top left).
* The only income listed is "Wages & Tips."
* Budget: $2,000.00
* Actual: $2,000.00
*
Result: The "Total Income" in the summary matches these numbers ($2,000.00). This part is correct.
Step 2: Check Total Expenses
We need to add up the "Actual" costs from every category to see if they equal the $1,486.00 shown in the summary.
*
HOME EXPENSES (Actual column):
* Mortgage/Rent: $1,100.00
* Home/Rental Insurance: $67.00
* Electricity: $52.00
* Gas/Oil: $7.00
* Water/Sewer/Trash: $25.00
* Phone: $35.00
* Cable/Satellite: $15.00
* Internet: $150.00
* Lawn/Garden: $15.00
* Maintenance/Supplies: $20.00
* *Sum of Home Expenses:* $1,486.00
*
OTHER CATEGORIES (Actual column):
* Transportation: $0.00
* Health: $0.00
* Charity/Gifts: $0.00 (Empty)
* Daily Living: $0.00 (Empty)
* Entertainment: $0.00 (Empty)
* Savings: $0.00 (Empty)
* Obligations: $0.00 (Empty)
*
Grand Total Expenses Calculation:
$1,486.00 (Home) + $0.00 (Others) =
$1,486.00
*
Result: The "Total Expenses" in the summary ($1,486.00) is correct.
Step 3: Check the NET Difference
The "NET" row calculates the difference between Income and Expenses.
* Formula: `Total Income - Total Expenses`
* Calculation: `$2,000.00 - $1,486.00`
* Correct Answer:
$514.00 (This represents money left over).
Step 4: Identify the Error
Look at the
Difference column (Column I) in the Budget Summary for the NET row.
* The spreadsheet currently shows:
(141.00)
* In accounting, parentheses usually mean a negative number or a deficit.
* However, since the income ($2,000) is higher than the expenses ($1,486), the result should be a positive number ($514).
* The number `(141.00)` is incorrect. It seems to be a typo or an error carried over from a different calculation (possibly confusing it with the Home Expenses budget difference of -141).
Conclusion:
The totals for Income and Expenses are calculated correctly, but the final
NET Difference is wrong. It should show a positive balance of $514.00, not a negative balance of $141.00.
Final Answer:
The error is in the
NET Difference cell in the Budget Summary. It incorrectly displays
(141.00). The correct calculation is $2,000.00 (Income) - $1,486.00 (Expenses), which equals
514.00.
Parent Tip: Review the logic above to help your child master the concept of sample household budget worksheet.