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 $ 8,600 4,900 36,500 $14,800 $ 2,300 5,000 Retained earnings The beginning balance of retained earnings was $33,000, net income is budgeted to be $17,500, and dividends are budgeted to be $3,300.

Answer 1

[Ref: NOTE] $19,300 $8,600 $4,900 Mecca Copy Balance Sheet Assets Current Assets: Cash Accounts receivable Supplies inventory Leave it blank Leave it blank Total Current Assets Plant and Equipment: Equipment Less: Accumulated Depreciation Plant and Equipment, Net Total Assets $o $0 $32,800 $36,500 $14,800 $21,700 $54,500

$2,300 Liabilities & Shareholders' Equity Current Liabilities: Accounts Payable Shareholders' Equity: Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities & Shareholders' equity $5,000 $47,200 [Ref: NOTE] $52,200 $54,500 NOTE: Retained earnings, beginning balance Add: Net income for the year Less: Dividends during the year Retained earnings, ending balance $33,000 $17,500 $3,300 $47,200 Total Liabilities & Shareholders' equity Less: Accounts receivable Less: Supplies inventory Less: Equipment Add: Accumulated depreciation Cash balance $54,500 [Ref: Total Liabilities & Shareholders' Equity on Balance Sheet] $8,600 [Debit balance and so deducted] $4,900 [Debit balance and so deducted] $36,500 [Debit balance and so deducted] $14,800 (Credit balance and so added] $19,300