In this video, you will compare how much money was made with how much was spent.
To do this, you will calculate the balance that remains after adding income
and subtracting your expenses.
Then, you will create categories for each kind of expenditure, like rent, food, entertainment,
and others.
In the summary table, type “Income”.
Beneath it, type “Expenses” and “Balance.”
The balance is the amount of money left after subtracting all expenses.
Next, create formulas to calculate these totals.
In the data you copied, there are separate columns for debits and credits.
Debits are money that have been taken out of an account;
credits are money that have been added, or “Income.”
Calculate the total amount of money left in this account using a SUM formula.
Formulas always begin with an equals sign.
In the cell beside “Income,” type “ = ”.
Next, type SUM.
As you begin typing, an autofill menu appears.
Select SUM from the menu.
Select the cells to add together.
In this case, it is all of the cells in column E that are beneath the summary table.
Select column E.
The formula reads “SUM E to E.”
This will add together ALL of the values in Column E, even values in the summary table.
To remove values in the summary table, click in the formula bar.
Change the first cell reference to E12.
Now the formula will add all of the cells in E12 and below.
Close the parentheses in your formula, and press Enter.
The spreadsheet automatically adds the values in the “Credits” column.
Repeat these steps for the “Debits” column.
In the cell beside “Expenses,” type “ = ” and SUM.
Type “D12” “colon” “D” in the formula and close the parentheses.
Check the highlighted column to be sure you are adding the right numbers.
Great!
Press Enter to calculate total expenditures.
Now, create another formula to calculate the “balance,”
or, money left over after paying all expenses.
In the cell beside “Balance,” Type “ = ” and select the cell with the income calculation.
Type “minus” and select the calculated expenses cell.
Then, press enter.
The account balance is now calculated in this cell.
Great job!
In the next video, you will categorize expenditures.
Then, you will use SUM-IF formulas to calculate how much money was spent in each category.
Now, it’s your turn:
Create cells for Income, Expenses, and Balance.
Beside these, add formulas to calculate the total income, expenses, and balance.
Then, move on to the next video to start categorizing the data.