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 $ 9,800 $ 4,000 $ 42,500 $ 17,200 $ 3,500 $ 5,000 The beginning balance of retained earnings was $34,000, net income is budgeted to be $18,100, and dividends are budgeted to be $4,100. 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

Answer 1

Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Cash	17400
Accounts receivable	9800
Supplies inventory	4000
Total current assets		31200
Plant and equipment:
Equipment	42500
Accumulated depreciation	-17200
Plant and equipment, net		25300
Total assets		56500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		3500
Stockholders' equity:
Common stock	5000
Retained earnings	48000
Total stockholders' equity		53000
Total liabilities and stockholders' equity		56500
Note: Retained earnings = 34000+18100-4100= $48000