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Chapter 2 Financial Planning Exercise 4 Preparing income and expense statement. Use Worksheet 2 . 2 Bill and Nancy Ballinger are about to construct their
Chapter
Financial Planning Exercise
Preparing income and expense statement.
Use Worksheet Bill and Nancy Ballinger are about to construct their income and expense statement for the year ending December Bill is finishing up college and currently has no income. They have put together the following income and expense information for :
Nancy's salary $
Reimbursement for travel expenses
Interest on:
Savings account
Bonds of Alpha Corporation
Groceries
Rent
Utilities
Gas and auto expenses
Bill's tuition, books, and supplies
Books, magazines, and periodicals
Clothing and other miscellaneous expenses
Cost of photographic equipment purchased with charge card
Amount paid to date on photographic equipment
Nancy's travel expenses
Purchase of a used car cost
Outstanding loan balance on car
Purchase of bonds in Alpha Corporation
Using the information provided, prepare an income and expense statement for the Ballingers for the year ending December follow the form shown in Worksheet Enter all expense amounts as positive values.
INCOME AND EXPENSE STATEMENT
Names Bill and Nancy Ballinger
For the year Ended December
INCOME
Wages and salaries Name: Nancy
$ fill in the blank
Name:
Name:
Selfemployment income
Bonuses and commissions
Investment income Interest received
$ fill in the blank
Dividends received
Rents received
Sale of securities
Other
Pensions and annuities
Other income Reimbursement for travel expenses
$ fill in the blank
I Total Income
$ fill in the blank
EXPENSES
Housing Rentmortgage payment include insurance and taxes, if applicable
$ fill in the blank
Repairs, maintenance, improvements
Utilities Gas, electric, water
$ fill in the blank
Phone
Cable TV and other
Food Groceries
$ fill in the blank
Dining out
Transportation Auto loan payments
$ fill in the blank
License plates, fees, etc.
Gas, oil, repairs, tires, maintenance
$ fill in the blank
Medical Health, major medical, disability insurance payroll deductions or not provided by employer
Doctor, dentist, hospital, medicines
Clothing Clothes, shoes, and accessories
$ fill in the blank
Insurance Homeowner's if not covered by mortgage payment
Life not provided by employer
Auto
Taxes Income and social security
Property if not included in mortgage
Appliances, furniture, and other major purchases Loan payments
$ fill in the blank
Purchases and repairs
Personal care Laundry, cosmetics hair care
Recreation and entertainment Vacations
Other recreation and entertainment
$ fill in the blank
Other items Bill's tuition, books, and supplies
$ fill in the blank
Alpha Corp. bonds
$ fill in the blank
Travel expenses
$ fill in the blank
II Total Expenses
$ fill in the blank
CASH SURPLUS OR DEFICITIII
$ fill in the blank
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