Income statement preparation Adam and Arin Adams have collected their personal i
ID: 358213 • Letter: I
Question
Income statement preparation Adam and Arin Adams have collected their personal income and expense information and have asked you to put together an income and expense statement for the year ended December 31, 2015. The following information is received from the Adams family. a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement. b. Did the Adams family have a cash surplus or cash deficit? c. If the result is a surplus, how can the Adams family use that surplus? a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement. Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Adam's salary $44,600 Utilities $3,170 Arin's salary 30,100 Groceries 2,180 Interest received 500 Medical 1,480 Dividends received 110 Property taxes 1,662 Auto insurance 630 Income tax, Social Security 12,600 Home insurance 730 Clothing and accessories 2,020 Auto loan payment 3,270 Gas and auto repair 2,100 Mortgage payment 14,300 Entertainment 2,020
Explanation / Answer
a) Personal Income and Expense statement for period ending December 31, 2015
b) Adams family has a cash surplus of $ 29,148 (Income - Expenses).
c) This cash surplus can be used for various purposes like they can clear off their home loan, car loan or buy new utilities for their home. They can also use this to invest in bonds, stocks or invest in savings bank account to earn interest.
Income Adam's Salary $ 44,600 Arin's Salary $ 30,100 Interest received $ 500 Dividends received $ 110 Total Income $ 75,310 Expenses Utilities $ 3,170 Groceries $ 2,180 Medical $ 1,480 Property Taxes $ 1,662 Auto Insurance $ 630 Income tax, Social Security $ 12,600 Home Insurance $ 730 Clothing & Accessories $ 2,020 Auto Loan Payment $ 3,270 Gas & Auto repair $ 2,100 Mortgage $ 14,300 Entertainment $ 2,020 Total Expenses $ 46,162