Click to see additional Instructions Jason and Michelle are a young couple living in Maryland. Jason is a computer engineer in a software company and Michelle is a staff accountant in the same company. They want to prepare their income statement and balance sheet for the year 2020. 1. They have a joint checking and a joint savings account. As of Jan. 1, 2020, the checking account balance was $4,000 and the savings balance 54,000. They intend to keep at most $4,000 in their checking and any additional cash to their savings account. 2. They always carry $100 each in their wallets. 3. Jason's biweekly gross pay is $3,000 and Michelle's is $3,200. The net pays (take-home pay) for the couple are $1,900 and $2,050, respectively. They received a total of 26 paychecks in the year. Other payroll information is as follows: Gross pay Federal income tax State income tax FICA & Medicare Medical insurance premium Retirement contribution Net pay Jason 3,000 300 100 180 200 320 1,900 Michelle 3,200 320 10B 192 200 330 2,050 4. They had a $5,000 one-year certificate of deposit bought on Jun. 1, 2019, which yielded 4% annual interest. After it became mature, they put the money back to regular bank accounts. 5. They led an electronic joint tax return on Feb. 1, 2020, and received a direct deposit of $4,000 tax refund to their checking account from IRS on Feb. 18. 6. They had rented an apartment for the rest three months and paid $750 a month. Motivated by the low market price and low mortgage rate, they bought a townhouse on Apr. 1. The purchase price was $150,000 and the closing costs were $3,000. They paid down 5% of the total costs (home purchase plus closing costs) and took out a mortgage loan of $145,350 to pay for the remaining 95%. The monthly mortgage payment is $850, which includes loan payment of $750 and property tax of $100. The year-end loan balance is $144,136 and the house value remains at $150,000. 7. Jason has a Honda CRV bought in 2018 with $5,000 cash and an auto loan of $20,000. The monthly loan payment is $380, and the remaining balance at year-end is $2,500. Michelle leases an Audi A4 with monthly lease payment of $320. The KBB values of the vehicles are $15,000 and $25,000 respectively at the end of 2020 8. They bought $10,000 worth of fixture, furniture, and home appliances at the beginning of 2020, the value of which depreciated 10% by year-end. 9. Michelle does not have any significant jewelry except a ring worth $6,500. 10. Their other monthly expenses in addition to rent/mortgage and auto loan/lease payments are $1,800 per month, including gasoline $400, food $500, various other out-of-pocket insurance premiums $300, clothing $200 and others $400. 11. They took a vacation to Alaska in October and spent $3,000 cash in total. bon and Michelle Click to see additional Instructions Jason and Michelle are a young couple living in Maryland. Jason is a computer engineer in a software company and Michelle is a staff accountant in the same company. They want to prepare their income statement and balance sheet for the year 2020. 1. They have a joint checking and a joint savings account. As of Jan. 1, 2020, the checking account balance was $4,000 and the savings balance 54,000. They intend to keep at most $4,000 in their checking and any additional cash to their savings account. 2. They always carry $100 each in their wallets. 3. Jason's biweekly gross pay is $3,000 and Michelle's is $3,200. The net pays (take-home pay) for the couple are $1,900 and $2,050, respectively. They received a total of 26 paychecks in the year. Other payroll information is as follows: Gross pay Federal income tax State income tax FICA & Medicare Medical insurance premium Retirement contribution Net pay Jason 3,000 300 100 180 200 320 1,900 Michelle 3,200 320 10B 192 200 330 2,050 4. They had a $5,000 one-year certificate of deposit bought on Jun. 1, 2019, which yielded 4% annual interest. After it became mature, they put the money back to regular bank accounts. 5. They led an electronic joint tax return on Feb. 1, 2020, and received a direct deposit of $4,000 tax refund to their checking account from IRS on Feb. 18. 6. They had rented an apartment for the rest three months and paid $750 a month. Motivated by the low market price and low mortgage rate, they bought a townhouse on Apr. 1. The purchase price was $150,000 and the closing costs were $3,000. They paid down 5% of the total costs (home purchase plus closing costs) and took out a mortgage loan of $145,350 to pay for the remaining 95%. The monthly mortgage payment is $850, which includes loan payment of $750 and property tax of $100. The year-end loan balance is $144,136 and the house value remains at $150,000. 7. Jason has a Honda CRV bought in 2018 with $5,000 cash and an auto loan of $20,000. The monthly loan payment is $380, and the remaining balance at year-end is $2,500. Michelle leases an Audi A4 with monthly lease payment of $320. The KBB values of the vehicles are $15,000 and $25,000 respectively at the end of 2020 8. They bought $10,000 worth of fixture, furniture, and home appliances at the beginning of 2020, the value of which depreciated 10% by year-end. 9. Michelle does not have any significant jewelry except a ring worth $6,500. 10. Their other monthly expenses in addition to rent/mortgage and auto loan/lease payments are $1,800 per month, including gasoline $400, food $500, various other out-of-pocket insurance premiums $300, clothing $200 and others $400. 11. They took a vacation to Alaska in October and spent $3,000 cash in total. bon and Michelle