I read the information lines and computed all the values. My answer was said to be partially incorrect. Please help. An annual income statement needs to be computed for the given information. Thank you!
Q1 Income Statement The Income Statement Wages and salaries (grossO 161 200 Investment income interest dividends capital gains Rental other (tax refund) Total income Expenses mortgage payments down payment enance fees (HOA) hol Transportation payments maintenance, and ga license, parking, ather other transportation cost Food and other sumption items payrol real estate and personal other taxes (FICA are) Insurance copay and deductibles Leisure and entertainment Clothing Total 02.150 Net savings retirement contribution regular savings total savings Q1 Information Search Jason and Michelle are a young couple living in Maryland, Jason is an 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 year 2016 1. They have a joint checking and a joint savings account. As of Jan. 1,2016, the checking account balance was $4,000 and the savings balance $4,000. 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 S3.000 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: Jason Michelle 3000 3200 Gross pay Federal income tax 300 320 State income tax 00 08 FICA & Medicare Medical insurance premium 200 Retirement contribution 320 330 Net 1900 2050 4. They had a $5,000 one-year certificate of deposit bought on Jun. 1, 2015 which yielded 4% annual nterest. After it became matured, they put the money back to regular bank accounts. 5. They led an electronic joint tax return on Feb. 2016 and received a direct deposit of S4,000 tax o 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 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 S100. The year-end loan balance is $144,136 and the house value remains at S150,000. 7. Jason has a Honda CRV bought in 2013 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 AudiAA with monthly lease payment of $20. The KBB values of the vehicles are $15,000 and $25.000 respectively at the end of 2016. 8. They bought $10,000 worth of fixture, furniture and home appliances at the beginning of the 2016 the value of which depreciated 10% by year end 9. Michelle does not have any significant jewelries except a ring worth S6.500 10. Their other monthly expenses in addition to rent/mortgage and auto ioanMease 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 Q1 Income Statement The Income Statement Wages and salaries (grossO 161 200 Investment income interest dividends capital gains Rental other (tax refund) Total income Expenses mortgage payments down payment enance fees (HOA) hol Transportation payments maintenance, and ga license, parking, ather other transportation cost Food and other sumption items payrol real estate and personal other taxes (FICA are) Insurance copay and deductibles Leisure and entertainment Clothing Total 02.150 Net savings retirement contribution regular savings total savings Q1 Information Search Jason and Michelle are a young couple living in Maryland, Jason is an 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 year 2016 1. They have a joint checking and a joint savings account. As of Jan. 1,2016, the checking account balance was $4,000 and the savings balance $4,000. 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 S3.000 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: Jason Michelle 3000 3200 Gross pay Federal income tax 300 320 State income tax 00 08 FICA & Medicare Medical insurance premium 200 Retirement contribution 320 330 Net 1900 2050 4. They had a $5,000 one-year certificate of deposit bought on Jun. 1, 2015 which yielded 4% annual nterest. After it became matured, they put the money back to regular bank accounts. 5. They led an electronic joint tax return on Feb. 2016 and received a direct deposit of S4,000 tax o 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 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 S100. The year-end loan balance is $144,136 and the house value remains at S150,000. 7. Jason has a Honda CRV bought in 2013 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 AudiAA with monthly lease payment of $20. The KBB values of the vehicles are $15,000 and $25.000 respectively at the end of 2016. 8. They bought $10,000 worth of fixture, furniture and home appliances at the beginning of the 2016 the value of which depreciated 10% by year end 9. Michelle does not have any significant jewelries except a ring worth S6.500 10. Their other monthly expenses in addition to rent/mortgage and auto ioanMease 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
