Practice: Chapter 02 Using Financial Statements and Budgets 70 Chapter 2 Financial Planning Exercise 4 Preparing income and expense statement Use Worksheet 2.2 Ariana and Nicholas Peterson are about to construct their income and expense statement for the year ending December 31, 2020. Nicholas is finishing up college and currently has no income. They have put together the following income and expense Information for 2020: Ariana's salary $47,000 Reimbursement for travel expenses 2,400 Interest on: Savings account 110 Bonds of Delta Corporation Groceries 4,150 Rent 9,500 Utilities 960 Gas and auto expenses 650 Nicholas' tuition, books, and supplies 3,300 Books, magazines, and periodicals 280 Clothing and other miscellaneous expenses 2,600 Cost of photographic equipment purchased with charge 2,200 card Amount paid to date on photographic equipment 1,600 Ariana's travel expenses 1,950 Purchase of a used car (cost) 9,750 Outstanding loan balance on car 7,300 Purchase of bonds in Delta Corporation 4,900 Using the information provided, prepare an income and expense statement for the Petersons for the year ending December 31, 2020 (follow the form shown in Worksheet 2.2). Enter all expense amounts as positive values. INCOME AND EXPENSE STATEMENT Name(s) Ariana and Nicholas Peterson For the month or year] Year Ended December 31, 2020 INCOME Wages and salaries Name: Ariana Peterson $ Name: Name: TGES 20 "ractice: Chapter 02 Using Financial Statements and Budgets INCOME AND EXPENSE STATEMENT Name(s) Ariana and Nicholas Peterson For the month or year] Year Ended December 31, 2020 INCOME Wages and salaries Name: Ariana Peterson $ Name: Name: Self-employment income Bonuses and commissions Investment income Interest received Dividends received Rents received Sale of securities Other Pensions and annuities Other income $ Reimbursement for travel expenses (1) Total Income $ EXPENSES Housing $ $ Utilities $ Food Rent/mortgage payment (include insurance and taxes, if applicable) Repairs, maintenance, improvements Gas, electric, water Phone Cable TV and other Groceries Dining out Auto loan payments License plates, fees, etc. Gas, oil, repairs, tires, maintenance Health, major medical, disability Insurance Kpayroll deductions or not provided by employer) Doctor, dentist, hospital, medicines Clothes, Shoes, and accessories Homeowner's (if not covered by mortgage $ Transportation $ Medical Clothing Insurance $ $ $ $ $ $ tice: Chapter 02 Using Financial Statements and Budgets Other income Reimbursement for travel expenses (I) Total Income EXPENSES Housing Rent/mortgage payment (include insurance and taxes, if applicable) Repairs, maintenance, Improvements Utilities Gas, electric, water Phone Cable TV and other Food Groceries Dining out Transportation Auto loan payments License plates, fees, etc. Gas, oil, repairs, tires, maintenance Medical Health, major medical, disability insurance (payroll deductions or not provided by employer) Doctor, dentist, hospital, medicines Clothing Clothes, shoes, and accessories 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 Loan payments other major purchases Purchases and repairs Personal care Laundry, cosmetics, hair care Recreation and entertainment Vacations Other recreation and entertainment Other items Nicholas' tuition, books, and supplies Purchcase of Delta Corp. bonds Travel expenses (II) Total Expenses CASH SURPLUS (OR DEFICIT) [(1)-(11)] prog ZUZE TURI $ $ $ $ $ $ $
