P3–4 Income statement preparation Adam and Arin Adams have collected their personal income and expense information and have asked you to put together an income and expense statement for the year ended December 31, 2015. The following information is received from the Adams family.

a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement.

b. Did the Adams family have a cash surplus or cash deficit?

c. If the result is a surplus, how can the Adams family use that surplus?

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Adam's salary $45,000 Utilities $ 3,200 Arin's salary 30,000 Groceries 2,200 Interest received 500 Medical 1,500 Dividends received 150 Property taxes 1,659 Auto insurance 600 Income tax, Social Security 13,000 Home insurance 750 Clothes and accessories 2,000 Auto loan payment 3,300 Gas and auto repair 2,100 Mortgage payment 14,000 Entertainment 2,000