Question

Skip and Jackie Garcia have been married for over two years. They have been trying to save for a down payment on a house, but they feel that there is never anything left over to save. They talked with their parents who suggested that they prepare an income and expense statement. Skip and Jackie put together the following worksheet. Worksheet $ 16 218 $ 410 3,000 4,356 68 Car payment Skip's commission Commuter train pass (year) Apple dividend Renter's Insurance (year) Puget Sound Energy bill Verizon bill Rent Savings account interest School loan Taxes Skip Jackie Wages & salaries Skip Jackie 3,600 3,420 لیا ط با 20,000 19,000 725 The following is some additional information. • For income items, they knew yearly amounts. For expenses, in some cases they knew the annual amount (for example, Jackie's monthly commuter train pass). They listed those amounts and noted them as such. • Unfortunately, for other expenses, they provided last month's payment, stating that the amount didn't change much from month to month. . Based on their employer-provided health insurance, they incur a copay of $25 per visit. They estimated that they saw the doctor (combined) 5 times during the year. • Jackie estimated that she spends about $125 a month on clothing and $290 a month on groceries. They went on a Disney Cruise trip that cost $1,750. They took an additional $500 in spending money. That was their only vacation. Prepare an annual income and expense statement for the Garcias as of December 31. Round all dollar amounts to the nearest whole dollar, and do not include an item in another category if a category already exists for it. If an item does not require a balance, be sure to insert a zero to avoid a loss of credit for the particular item.

Answer 1

Find the solution sheet in the attachment and keep the following notes in mind while checking the attached sheet.

Income and Expense Statement Dollars 20,000 19,000 3,000 68 42,084 Name(s): Skip and Jackie Garcia For the: Year Ended: December 31, 2017 Income Wages and salaries Name: Skip Garcia Name: Jackie Garcia Bonuses and commissions Skip's commission Investment incame Apple dividend received Savings account (1) Total Income: Expenses Rent or mortgage payment (include Housing insurance and taxes, if applicable) Utilities Gas, electric, water Phone Food Groceries Transportation Public transportation |Auto loan Medical |Health, major medical, disability insurance (Payroll deductions are not provided by employer) Clothing Clothes, Shoes, and accessories Rental or homeowner's insurance (if not Insurance covered by mortgage payment) Taxes Skip's income and Social Security Jackie's income and Social Security Recreation and entertainment Vacations Other School loan (2) Total Expenses: Cash Surplus or Deficit (1-2) 8,700 1,740 1,656 3,480 4,356 4,920 250 1,500 435 3,600 3,420 2,250 2,616 38,923 3,161

Notes:

1. As per the Additional information given in the question, All the expenses assumed to be monthly expenses except the Yearly payments(train pass & Renters insurance), Taxes, Hospital visit, and Vacation fees.

And all incomes considered yearly incomes only.

2. Regarding Hospital visit fees, it is assumed that both were visited the hospital 5 times each.