Question

The management of Mecca Copy, a photocopying center located on University Avenue, has compliled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances Cash 2 Accounts receivable Supplies inventory Equipment Accumulated depreciation Accounts payable Common atock Retained earnings 9,400 3,200 $ 40,500 $ 16,400 $ 3,100 $ 5,000 2 The beginning balance of retained earnings was $30,000, net income is budgeted to be $20,200, and dividends are budgeted to be $3,300. 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: Next 9 of 9 < Prev PW OCT 30 MacBook Air

Answer 1

Balance Sheet Assets Mecca Copy Statement of Retained Earnings Retained earnings (beginning balance) | $ Less: Net income $ Less: Dividends $ Retained earnings (ending balance) $ 30,000 20,200 (3,300) 46,900 Current Assets Cash Accounts receivable Supplies Inventory Total Current Assets Non-current assets $ $ $ 18,300 9,400 3,200 $ 30,900 Cash = Total Liabilities & Stockholders' Equity - Total assets (except cash) ($ 55,000 - $ 36,700) $ 18,300 $ $ 40,500 16,400 Equipment Less: Accumulated depreciation equipment Net Equipment Total Assets $ $ 24,100 55,000 $ $ 3,100 3,100 Liabilities and Stockholders' Equity Current liabilities Accounts Payable Total Liabilities Shareholders' Equity Common Stock $ 5,000 Retained Earnings $ 46,900 Total Shareholders' Equity Total Liabilities and Stockholders' Equity $ $ 51,900 55,000