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 $43,000 Reimbursement for travel expenses 1,700 Interest on: Savings account 110 Bonds of Delta Corporation 70 Groceries 4,150 Rent 9,300 Utilities 960 Gas and auto expenses 650 Nicholas' tuition, books, and supplies 3,300 Books, magazines, and periodicals 280 Clothing and other miscellaneous expenses 2,900 Cost of photographic equipment purchased with charge card 2,200 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: 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 $ (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 other major purchases Loan payments $ 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) [(I)-(II)] $

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 $43,000 Reimbursement for travel expenses 1,700 Interest on: Savings account 110 Bonds of Delta Corporation 70 Groceries 4,150 Rent 9,300 Utilities 960 Gas and auto expenses 650 Nicholas' tuition, books, and supplies 3,300 Books, magazines, and periodicals 280 Clothing and other miscellaneous expenses 2,900 Cost of photographic equipment purchased with charge card 2,200 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: 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 $ (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 other major purchases Loan payments $ 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) [(I)-(II)] $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$43,000
Reimbursement for travel expenses	1,700
Interest on:
Savings account	110
Bonds of Delta Corporation	70
Groceries	4,150
Rent	9,300
Utilities	960
Gas and auto expenses	650
Nicholas' tuition, books, and supplies	3,300
Books, magazines, and periodicals	280
Clothing and other miscellaneous expenses	2,900
Cost of photographic equipment purchased with charge card	2,200
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:
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	$

(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 other major purchases	Loan payments	$
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) [(I)-(II)]

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