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	$	8,100
Supplies inventory	$	3,200
Equipment	$	34,000
Accumulated depreciation	$	16,000
Accounts payable	$	1,800
Common stock	$	5,000
Retained earnings		?

The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800.

Required:

Prepare the company’s budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Solution Cah Tot liabilities and stock holdexs receivasle t Account supplies inventoy Equipmeut ACGumulated depreciatibn, eqity SIDO3100+t 2400-kovo) = 415002300 12-200o Reained earnings = Operng blaue of retaines Carninget net ncome- diuidend 28600 S00-4800 z 34700

parhulers Cash Astets 200 ACeaunts eceivabe 8100 Cuplies inuentong 2200 otal Cereu anets 23SOD plantaudtquipnents} quipment B4000 b000 ACCumulated depoehon Net plant and eguipment TDtel asets idlalitesandtock, ho lders Cut Aecount pable Stoch hoder's equity SOOD Common Stocls Retaired eanings 34100 39700 Tate Steck holdey's equir Dhed aies and stocksholdexs equith