In this chapter you learned about the benefits of budgeting for a business. It is also important for individuals, especially students. Jo is an accounting major. Jo's estimate of expenses for the next eight-month academic year (September to May) are given in the chart below. Jo receives $750 per month from family members, $700 from a part-time job, and $1,200 from a bursary.

Instructions
(a) Prepare a budget for Jo.
1. How much is the shortfall?
2. What suggestions do you have to fund and reduce the shortfall?
(b) Jo has the option of renting a room, with shared kitchen facilities, off campus. For the eight-month period, rent would be $4,800, utilities $800, and cable/Internet charges $640, with food estimated at $2,800. It would take about one and a half hours a day to travel to and from campus. Do you think Jo should take this option?

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$6,200 9,200 Tuition and fees Residence and food Local travel (included with student fees) Clothing Entertainment and going out Books and supplies Internet connection Travel home Personal sundries Misc. $1,500 295 400 560 420 400 424