John and Mary are a couple who own a home and are both employed. Johns monthly take home pay is $$4,167$ while Mary is bringing home $$4,583$ each month. They receive dividends of $$200$ in September and December on their modest investment portfolio and earn about $$25$ of interest each month on their savings. John expects to collect $$3,000$ of a consulting fee in August $2024($for work already complete. It is an accounts receivable as of June $1,2024.$ John anticipates more consulting work later in the year $($but hasnt done the work yet$)$ which should be about $$4,000$ to be received in December of $2024.$

An analysis of their spending, which Mary did by reviewing the activity in their checking account $($they pay for most of their expenses with either checks or the checking account debit cards$),$ shows the following information for preparing a $6-$month budget $($July $2024$ through December $2024)$:

Mortgage the couple pay $$1,400$ a month on the home mortgage

Car loan they pay $$600$ a month on a car loan

Car insurance $-$ $$250$ a month

Property insurance $-$ $$100$ a month for the house

Property taxes of $$1,500$ are owed in February and again in June.

Life insurance in July of each year, the couple make a $$2,500$ payment on a $$500,000($death coverage$)$ whole Life policy that also accumulates a cash surrender value.

Charity they contribute about $$20$ a week to their church which is $$80$ a month. They also plan a $$500$ contribution to the United Way in September and $$600$ to the American Heart Association in November.

Gas$/$electricity$/$utilities $-$ $$350$ per month for November and December $($the cold months$),$ and average $$200$ for July through October.

Telephone $($Cell$)-$ $$100$ per month

Cable and Internet $-$ $$125$ per month

Groceries and Housekeeping Supplies $-$ $$550$ per month

Health insurance Their employers plan covers them for health insurance, but they must also pay $$300$ per month out of their own pockets

Entertainment and Dinning Out $-$ $$250$ per month which includes going the movies and dinner at a restaurant.

Gifts They have weddings to attend in August and will be giving total of $$500$ in gifts and in November, they are planning on giving a generous gift of $$800$ to their only nephew who is graduating from UMASS Dartmouth.

Clothing they spend about $$50$ a month on clothing but in October$2024$ they will spend an additional $$700$ on a custom suit that John wants.

Personal care products and services $-$ $$120$ a month.

Education Mary has tuition due in July $2024$ of $$1,200$ for a night class at a local college. She will also take $3$ fall classes starting in September $2024($$$1,200$ each to be paid in September $2024).$

Gym Membership$/$Golf the gym member ship is $$200$ a month and Mary plans to join the local golf club in October$2024$ and plans on a membership fee $($paid in October $2024)$ of $$2,800.$

Also prepare a balance sheet for them as of June $12024$ assuming the following information that Mary has gleaned from bank and investment account statements, life insurance contracts, a household inventory, and real estate documents. The biggest asset they own is their home. They purchased the home a few years ago for $$225,000.$ The tax assessed value $($used to calculate their property taxes is $$250,000.$ A very recent appraisal was done on the property by an expert, independent real estate appraiser and showed an estimated market value of $$300,000($June $1,2024).$ The appraisal was done because the couple were thinking about refinancing their home mortgage but decided to wait a bit longer. The mortgage balance on the home as of June $1,2024$ was $$200,000$ and they owed $$1,500$ in property taxes as of June $1,2024.$ A small home improvement loan balance, which they used to fix up a bathroom, was $$2,000.$ They borrowed the money from John$$s Dad who won$$t demand repayment for another $2$ years.

Mary reviews the bank statement and sees that their checking account balance as of June $1,2024$ is $$5,000$ and they have another $$10,000$ in a passbook savings account at their credit union. They also have a certificate of deposit at Bank of America of $$2,000.$

In $2019,$ the couple bought a new car for $$25,000$ and the current estimated value per Kelly$$s Bluebook of Used Cars is only $$12,000.$ Furniture is estimated at $$10,000$ and Mary$$s engagement ring was recently valued by a jewelry shop at $$4,000.$

Their investment portfolio $($they own some shares of stock in a few corporations$)$ cost $$3,000$ and their market value as of the close of the stock market on June $1,2024$ was $$6,000.$ Their life insurance policy has a death benefit of $$500,000($if either one of them dies, the survivor will receive $$500,000)$ and a cash surrender value of $$4,000$ which they could cash$-$in if they needed to or could borrow against it$.$

Between their employers $401($k$)$ plan and their IRAs, the couple have a market value of $$35,000.$ They recently used their credit cards for a vacation and holiday gifts and have an outstanding balance of $$3,000.$

John recently did some consulting work on $$the side$$ and is owed $$3,000.$ But even though he completed the consulting work, he believes he will not collect the $$3,000($accounts receivable$)$ until sometime in June $2024.$ Be sure to consider that amount for the balance sheet and also for the budget.

Finally, the total amount owed in student loans is $$15,000.$