CENGAGE MINDTAP Assignment: Chapter 02 Using Financial Statements and Budgets Skip and Jackie Garcia have been married for over two years. They have been trying to save for a down payment on a house, but they feel that there is never anything left over to save. They talked with their parents who suggested that they prepare an income and expense statement. Skip and Jackie put together the following worksheet. Car payment Skip's commission Worksheet $410 Savings account interest $39 3,188 School loan Commuter train pass (year) 4,356 Taxes 218 1BM dividend 163 Skip 3,825 Renter's Insurance (year) 435 Jackle 3,634 Central Maine Power bill 145 Wages & salaries T-Mobile bill 138 Skip Rent 725 Jackie 21,250 20,188 The following is some additional information. For income items, they knew yearly amounts. For expenses, in some cases they knew the annual amount (for example, Jackie's commuter train pass). They listed those amounts and noted them as such. Unfortunately, for other expenses, they provided last month's payment, stating that the amount didn't change much from month to month. Based on their employer-provided health insurance, they incur a copay of $35 per visit. They estimated that they saw the doctor (combined) 7 times during the year. Jackie estimated that she spends about $175 a month on clothing and $290 a month on groceries They went on a Norwegian Cruise trip that cost $2,200. They took an additional $500 in spending money. That was their only vacation. Assignment: Chapter 02 Using Financial Statements and Budgets Prepare an annual income and expense statement for the Garcias as of December 31. Round all dollar amounts to the nearest whole dollar, and do not include an item in another category if a category already exists for it. If an item does not require a balance, be sure to insert a zero to avoid a loss of credit for the particular item. Income and Expense Statement Name(s): Skip and Jackie Garcia For the: Year | Ended: December 31, 20xx Income Wages and salaries Bonuses and commissions Investment income (1) Total Income: Name: Skip Garcia Name: Jackie Garcia Skip's commission IBM dividend received Savings account Dollars $21,250 3,188 163 Expenses Housing Utilities Rent or mortgage payment (include insurance and taxes, if applicable) Gas, electric, water 8,700 Food Transportation Medical Clothing Insurance Taxes Recreation and entertainment Other (2) Total Expenses: Phone Groceries Public transportation Auto loan Health, major medical, disability insurance (payroll deductions are not provided by employer) Clothes, shoes, and accessories Rental or homeowner's insurance (if not covered by mortgage payment) Skip's income and Social Security Jackie's income and Social Security Vacations School loan 1,656 3,480 4,356 245 2,100 435 3,634 2,700 2,616 NGAGE | MINDTAP ment: Chapter 02 Using Financial Statements and Budgets or the: Year Ended: December 31, 20XX ncome Wages and salaries Bonuses and commissions Investment income Name: Skip Garcia Name: Jackie Garcia Skip's commission IBM dividend received (1) Total Income: Expenses Housing Utilities Food Transportation Medical Savings account Dollars $21,250 3,188 163 Rent or mortgage payment (include insurance and taxes, if applicable) 8,700 Gas, electric, water Phone: 1,656 Groceries 3,480 4,356 Public transportation Auto loan Health, major medical, disability insurance (payroll deductions are not provided by employer) 245 Clothing Insurance Taxes Recreation and entertainment Other (2) Total Expenses Cash Surplus or Deficit (1-2): Clothes, shoes, and accessories Rental or homeowner's insurance (if not covered by mortgage payment) Skip's income and Social Security Jackie's income and Social Security Vacations School loan Grade It Now 2,100 435 3,634 2,700 2,616 Save & Continue Continue without saving Q Search this course