Question

The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings $ 9,600 $ 3,600 $ 41,500 $ 16,800 $ 3,300 $ 5,000 The beginning balance of retained earnings was $32,000, net income is budgeted to be $15,700, and dividends are budgeted to be $5,800. Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

$ 25,500 Mecca Copy Budgeted Balance Sheet Assets Current assets : Cash $ 12,300 Accounts Receivables $ 9,600 Supplies Inventory $ 3,600 Total Current assets Plant and Equipment Equipment $ 41,500 less: Accumulated Depreciation $ 16,800 Plant and Equipment, net Total assets Liabilities and Stockholders' Equity Current Liabilities Accounts payable Stockholders' equity: Common Stock $ 5,000 Retained Eranings $ 41,900 Total stockholders' equity Total Liabilities and Stockholders' equity | $ $ 24,700 50,200 3,300 $ $ 46,900 50,200

Working Notes : Ending Retained Earnings Balance Beginning balance of Retained Earnings Add: Net Income $ 32,000 $ 15,700 $ 47,700 $ 5,800 $ 41,900 Less: dividends Ending Retained Earnings Balance Total Liabilitiesand Stockholders' Equity = Total Assets Current Assets = Total assets- plant and equipment net = $50,200 - $24,700 = $25,500 Cash = Current assets - Accounts receivables-supplies Inventory = $25,500 - $9,600-$3,600 =$12,300