Question

Using the following income and expenses information, calculate the surplus or deficit:

Employment wages: $115,000
Interest earned: $950
Dividends earned: $1,200
Mortgage payments: $38,600
Auto loan payments: $3,300
Student loan payments: $9,000
Taxes: $31,050
Utilities: $3,600
Personal savings: $12,000
Gas: $3,500
Groceries: $7,200
Entertainment: $6,000
Charitable donations: $500
Clothing: $1,500
Travel: $1,000

−$2,000


−$100


$22,000


$23,900

Answer 1

The surplus or deficit is $11,400.

Step-by-step explanation:

To calculate the surplus or deficit, we need to subtract the total expenses from the total income. Let's calculate:

Total Income = Employment wages + Interest earned + Dividends earned = $115,000 + $950 + $1,200 = $117,150.

Total Expenses = Mortgage payments + Auto loan payments + Student loan payments + Taxes + Utilities + Gas + Groceries + Entertainment + Charitable donations + Clothing + Travel = $38,600 + $3,300 + $9,000 + $31,050 + $3,600 + $3,500 + $7,200 + $6,000 + $500 + $1,500 + $1,000 = $105,750.

Surplus/Deficit = Total Income - Total Expenses = $117,150 - $105,750 = $11,400.

Therefore, the surplus or deficit is $11,400.