Income and expense statement

Sam and Joan Wallingford 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.

Sam and Joan put together the following worksheet.

	Worksheet
Car payment	$ 315	Savings account interest	$ 16
Sam’s commission	3,375	School loan	113
Commuter train pass (year)	2,256	Taxes
Nike dividend	68	Sam	4,050
Renter’s Insurance (year)	225	Joan	3,848
Dallas Power & Light bill	75	Wages & salaries
U.S. Cellular bill	71	Sam	22,500
Rent	375	Joan	21,375

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, Joan’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 $15 per visit. They estimated that they saw the doctor (combined) 3 times during the year.
•	Joan estimated that she spends about $125 a month on clothing and $150 a month on groceries.
•	They went on a Carnival Cruise trip that cost $2,200. They took an additional $500 in spending money. That was their only vacation.

Prepare an annual income and expense statement for the Wallingfords 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): Sam and Joan Wallingford
For the: Year | Ended: December 31, 20XX
Income		Dollars
Wages and salaries	Name: Sam Wallingford	$22,500
	Name: Joan Wallingford	21,375.00
Bonuses and commissions	Sam’s commission	3,375
Investment income	Nike dividend received	68
	Savings account	16.00
(1) Total Income:		$47,334.00
Expenses
Housing	Rent or mortgage payment (include insurance and taxes, if applicable)	4,500
Utilities	Gas, electric, water	900.00
	Phone	852
Food	Groceries	1,800
Transportation	Public transportation	2,256
	Auto loan	3,780.00
Medical	Health, major medical, disability insurance (payroll deductions are not provided by employer)	45
Clothing	Clothes, shoes, and accessories	1,500
Insurance	Rental or homeowner’s insurance (if not covered by mortgage payment)	225
Taxes	Sam’s income and Social Security	4,050.00
	Joan’s income and Social Security	3,848
Recreation and entertainment	Vacations	2,700
Other	School loan	1,356
(2) Total Expenses:		$27,812.00
Cash Surplus or Deficit (1–2):		$19,522.00