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 $ 9,100 receivable Supplies inventory $ 2,600 Equipment $39,000 Accumulated $15,800 depreciation Accounts payable $ 2,800 Common stock $ 5,000 Retained earnings The beginning balance of retained earnings was $27,000, net income is budgeted to be $16,600, and dividends are budgeted to be $3,100. Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Mecca Copy Budgeted Balance Sheet Assets Current assets: Total current assets Plant and equipment: Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity: Total stockholders' equity Total liabilities and stockholders' equity 0

Answer 1

Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Cash	13400
Accounts receivable	9100
Supplies inventory	2600
Total current assets		25100
Plant and equipment:
Equipment	39000
Accumulated depreciation	-15800
Plant and equipment, net		23200
Total assets		48300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		2800
Stockholders' equity:
Common stock	5000
Retained earnings	40500
Total stockholders' equity		45500
Total liabilities and stockholders' equity		48300
Note: Retained earnings = 27000+16600-3100 = 40500