Income statement preparation Adim and Arn Adams have collectied their personal n

Question

Income statement preparation Adim and Arn Adams have collectied their personal ncome and epenoe information and have acked you to put together an income and expeme statenent or the year ended December 31, 2015 The sngion s received trom the Adams famty a Creale a personal incorie and expense statement tor the period b. Did the Adams family have a cash surplus or cash defic? Odended December 31, 2e15 ? be smarta corpHat' acome statement s a surphus, how can the Adane tamly use that surphus Daa Table Auto loan payment Auto insuance Home insurance Medical expenses Property baxes ncome tax and secial seourity Clothing and accessones spreadsheet ) Adan's saury Arints sairny 44,500 Uties 13,160 300 Orocenes 30 Medca nsdend eceived 1850 30 Income lax, Social Sey 0 Clohing and accesones Total Expenses 1354 Gas and alo repar 2.140 Molgage pament 13,500 Entn he Adase have a cash Print Done e. is the stalement below true or faise? Select tiom the oe-doen menu) The cash surphus can be used for a vanety of purposes in the shont tem tey may replace tha ca buy bet uure or mare Quoay pay of or ome Aeatvo Investments in the stack maker ae generaly designed to increate an indhiduats future ealth the parchate of bonds typicaly aows one to at ea retan hea SCENSER SINE LIOOE ICUONIC Enter any number in the edit fields and then continue to the next question

Explanation / Answer

Since the figures were not completely visible as the image is blurred, I have taken the figures as I could Identify them.
a.

b. Since income exceeds expenses, the Adams have a cash surplus.

c. The statement is true.

Personal finance: Income statement preparation INCOMES: Adam’s salary           44,500 Arin’s salary           29,900 Interest received                 530 Dividends received                 110 Total Income           75,040 EXPENSES Auto insurance                 630 Home insurance                 790 Auto loan payment              3,350 Mortgage payments           13,500 Utility expense              3,100 Groceries              2,200 Medical expenses              1,540 Property taxes              1,650 Income tax and social security           13,000 Clothes and accessories              2,040 Gas and auto repair              2,140 Entertainment              1,950 Total Expenses           45,890 Cash Surplus or (Deficit)           29,150

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