Question

Chapter 2 Financial Planning Exercise 4 Preparing personal Income and expense statement Use Worksheet 2.2 Robyn and Matthew Scott are about to construct their income and expense statement for the year ending December 31, 2020. Robyn works full time while Matthew is finishing up graduate school. They have put together the following income and expense Information for 2020: $42,000 2,250 Robyn's salary Reimbursement for travel expenses Interest on: Savings account Certificates of deposit Groceries 110 70 4,150 9,500 Rent Utilities 960 650 3,300 280 2,700 2,200 Gas and auto expenses Matthew's tuition, books, and supplies Books, magazines, and periodicals Clothing and other miscellaneous expenses Cost of photographic equipment purchased with charge card Amount paid this year on photographic equipment Robyn's travel expenses Purchase of a used car (cost) Outstanding loan balance on car Purchase of bonds in Verizon Communications Inc 1,600 1,950 9,750 7,300 4,900 Using the information provided, prepare an income and expense statement for the Scotts for the year ending December 31, 2020 (follow the form shown in Worksheet 2.2). Enter all expense amounts as positive values. CONTAM INE

Answer 1

B C D F G H Income and Expense Statement Name : Robyn & Mattew Scott For the year Income Ended Dec 31, 2020. Name :Robyn / $ 42000 Wages and Salaries Self employment income Bonuses and commissions $ 180 Investment income interest received Dividends received Rent received Sales of securities- Gain or loss Other: Reimburesement of Robyns Travel expenses $ 2250 Pensions & annuities Other incomes Total Income (1) $ 44430 Expenses $ 9500 Housing $ 650 Utilities Rent / Mortgage payment Repairs, Maintenance improvement Gas, Electric Water Phone Cable TV and other Groceries Dining out 960 4150 $ Food

Income and Expense Statement Name : Robyn & Mattew Scott For the year Income Tuvu Ended Dec 31, 2020. Transportation $ Medical Clothing $ 2700 Insurance Dining out Auto Loan payments License plates, fees, etc Gas, oil, reapirs, tires, maintenance Health, major medical, disability insurance Doctor, dentist, hospital, medicines Clothes, shoes and accessories Homeowners Life Auto Income & social security Property Loan payments Purchase & repairs Laundry, cosmetics, hair care Vacations Other recreation and entertainment(books& periodicals) Mathews tuition, books, & supplies Photographic equipment - Amount paid robyns travel expenses Total Expenses (2) Taxes Appliances, furniture, & other major purchase Personal Care 7300 9750 $ Recreation & entertainment $ Other items $ 280 3300 1600 1950 42140 $ Sheet1

7300 9750 Income and Expense Statement Name : Robyn & Mattew Scott For the year Ended Dec 31, 2020. Income Taxes Property Appliances, furniture, & other Loan payments major purchase Purchase & repairs $ Personal Care Laundry, cosmetics, hair care Vacations Recreation & entertainment Other recreation and entertainment(books& periodicals) $ Mathews tuition, books, & supplies Other items Photographic equipment - Amount paid robyns travel expenses Total Expenses (2) $ Cash Surplus (or deficit) (1 - 2) $ 280 3300 1600 1950 42140 2290 Notes: Interest of Savings and Certificate of deposit is calculated together and posted with there total amount of $ 180 Purchase cost of used car is taken full, where as cost of photographic equipment paid this year is only taken. balance is not shown as outstanding expense of payment towards equipment. This is a personal income and statement account preparation hence not shown. Had it been a company financials, it would had been mandatory to mention it.