Question

Please explain how to do the Budgeted Balance Sheet.

Thank you

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 Accounis receivable Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Ratained earnings 5 8,300 5 3,200 S 35,000 S 14,200 S 2,000 S 5,000 The beginning balance of retained eamings was $30.000, net income is budgeted to be $13,900, and dividends are budgeted to be $3,100. Required: Prepare the company's budgeted balance seet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Budgeted Balance sheet

Assets
Current assets :
Cash	15500
Accounts receivable	8300
Supply inventory	3200
Total current assets		27000
Plant and equipments :
Equipment	35000
Less: Accumulated depreciation	14200
Plant and Equipment , net		20800
Total Assets		47800
Liabilities and stockholder's equity
Current liabilities
Accounts payable		2000
Stockholders' equity
Common stock	5000
Retained earnings [30000+13900-3100]	40800
Total Stockholders' equity		45800
Total Liabilities and stockholder's equity		47800

Note:- 1) Ending Retained Earnings = beginning balance + net income - dividend

2) Total Assets = Total Liabilities + Total Liabilities and stockholder's equity

3) Total current assets = Cash + Accounts receivable + supplies

[Total assets - Plant and Equipment , net ] = Cash + 8300 + 3200

47800 - 20800 = Cash + 8300 + 3200

27000 = Cash + 11500

Cash =