For the year ending December 31, 20X2, what is Ted Jones's surplus or deficit based on his income and expenses?

To determine Ted Jones's surplus or deficit for the year ending December 31, 20X2, you need to compare his total income to his total expenses. A surplus occurs when income exceeds expenses, while a deficit results when expenses exceed income.

In this case, if we arrived at a $2,700 surplus, it indicates that Ted's total income surpassed his expenses by that amount. This suggests that after covering all his essential costs and expenditures, he was left with additional funds. This positive financial outcome can be beneficial, as it allows for savings, investments, or other financial planning opportunities.

Understanding how to calculate surplus or deficit involves closely monitoring income streams—like salary, dividends, or other earnings—against all outlays, including fixed costs such as rent or mortgage, variable costs like groceries, and discretionary spending. Achieving a surplus usually points to effective budgeting or increased income.

In contrast, a deficit would mean that Ted's expenses outstripped his income, suggesting a need to either decrease spending or find ways to increase his earnings to avoid financial distress. Hence, recognizing the significance of a $2,700 surplus situates Ted in a favorable financial position as he can use that surplus effectively for future planning.