Question

Assessment activity Chapter 02- Using Financial Statements and Budgets Attention: Due to a bug in Google Chrome, this page may not function correctly, Click here to learn more. 6. Income and expense statement Stan and Julie wallace 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. Stan and Julie put together the following worksheet. Worksheet $ 410 Savings account interest39 3,000 School loan Car payment Stan's commission Commuter train pass (year) 2,256 Taxes 1BM dividend Renter's Insurance (year) 225 Central Maine Power bill T-Mobile bill Rent 113 163 Stan 3,600 3,420 75 Wages & salaries 71 Stan 375 20,000 19,000 ulie 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, Julie'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 $30 per visit. They estimated that they saw the doctor (combined) 6 times during the year. . Julie estimated that she spends about $125 a month on clothing and $150 a month on groceries. . They went on a Norwegian Cruise trip that cost $1,975. They took an additional $500 in spending money. That was their only vacation

Answer 1

Solution: The worksheet is as under:-

Income		Dollars
Wages and Salaries	Name: Stan Wallace	20000
	Name: Julie Wallace	19000
Bonus and Commissions	Stan 's commission	3000
Investment Income	IBM dividend received	163
	Savings account	39
(1) Total Income:		42202
Expenses		Dollars
Housing	Rent or mortgage payment (include insurance and taxes, if applicable)	375
Utilities	Gas, electric, water, phone	146
Food	Groceries	1800
Transportation	Public Transportation	2256
	Auto Loan	0
Medical	Health, major medical, disability insurance (payroll deductions are not provided by employer)	180
Clothing	Clothes , shoes and accessories	1500
Insurance	Rental or homeowner's insurance (if not covered by mortgage payment)	225
Taxes	Stan's income and Social Security	3600
	Julie's income and Social Security	3420
Recreation and entertainment	Vacations	2475
Other	School Loan	113
(2) Total Expenses:		16090
Cash Surplus (1-2)		26112