Competency Assessment $-$ Lesson $1\mathrm{.}2$ Cash on hand $$70$ Balance in checking account $180$ Balance in money market deposit account with Southwest Savings $650$ Bills outstanding: Telephone $$20$ Electricity $70$ Charge account balance $190$ Visa $180$ MasterCard $220$ Taxes $400$ Insurance $220$ Total bills outstanding $1,300$ Condo and property $68,000$ Condo mortgage loan $52,000$ Automobile: $2015$ Honda Civic $12,000$ Installment loan balances: Auto loans $3,000$ Furniture loan $500$ Total Installment loan balances $3,500$ Personal property: Furniture $1,050$ Clothing $900$ Total personal property $1,950$ Investments: U$.$S$.$ government savings bonds $500$ Stock of Commodities Corp. $3,000$ Total Investment $3,500$ Part II: Preparing income and expense statement 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 $2020$: Competency Assessment $-$ Lesson $1\mathrm{.}2$Ariana$$s salary$$47,000$Reimbursement for travel expenses$1,950$Interest on: Savings account$110$ Bonds of Delta Corporation$70$Groceries$4,150$Rent$9,600$Utilities$960$Gas and auto expenses$650$Nicholas$$ tuition, books, and supplies$3,300$Books, magazines, and periodicals$280$Clothing and other miscellaneous expenses$2,700$Cost of photographic equipment purchased with charge card$2,200$Amount paid to date on photographic equipment$1,600$Ariana$$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 $2\mathrm{.}2)$ Part III:$$ Preparing cash budget Use a Word document to answer and submit the questions into Canvas. Landon and Naomi Gray are preparing their cash budget. Help the Grays reconcile the following differences, giving reasons to support your answers. Their only source of income is Landon$$s salary, which amounts to $$5,000$ a month before taxes. Landon wants to show the $$5,000$ as their monthly income, whereas Naomi argues that his take$-$home pay of $$3,917$ is the correct value to show. Naomi wants to make a provision for fun money, an idea that Landon cannot understand. He asks, $$Why do we need fun money when everything is provided for in the budget?