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. Worksheet
Car payment 410 Savings account interest 50
Skip's commission 3000 School loan 113
Commuter train pass (year) 2256 Taxes
IBM dividend 210 Skip 3600
Renter's Insurance (year) 225 Jackie 3420
Central Maine Power bill 75 Wages and salaries
T-Mobile bill 71 Skip 20000
Rent 375 Jackie 19000
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 monthly 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 $200 a month on clothing and $150 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 .
Required:
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.