The Grangers Manage Their Money by Using a Monthly Budget

question 34

Essay

The Grangers manage their money by using a monthly budget.Mr.Granger's semi-monthly salary is $2,800,and Mrs.Granger's biweekly salary is $4,150.Mr.Granger's net income of approximately 64% of his salary is deposited in their savings account each paycheck,whereas Mrs.Granger sees 66% of her salary deposited into their savings account.How much money should the Grangers transfer from their savings to checking to cover their monthly expenses if their goal is to leave 12% of budgeted income in savings and an additional 36% of budgeted income to cover non-monthly expenses (i.e. ,water,insurance,property taxes,vacations,Christmas,charitable giving,home maintenance,etc. )?

---

Definitions:

Record Depreciation Expense

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Allocate Prepaid Insurance

involves distributing the cost of insurance premiums over the period that the insurance coverage relates to, recognizing it as an expense over time rather than all at once.

Accrue Salaries Payable

Accrue Salaries Payable involves recording the salaries earned by employees that have not yet been paid, recognizing the liability before the cash is disbursed.