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 $ 10,100

Supplies inventory $ 4,600

Equipment $ 44,000

Accumulated depreciation $ 17,800

Accounts payable $ 3,800

Common stock $ 5,000

Retained earnings ?

The beginning balance of retained earnings was $37,000, net income is budgeted to be $21,700, and dividends are budgeted to be $4,300. Required: Prepare the company’s budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Mecca Copy BALANCE SHEET
current asset
cash	22300
Accounts receivable	10100
Inventory	4600
Total current asset		37000
Non current asset
Equipment	44000
less: Accumulated depreciation	(17800)	26200
Total asset		63200
liabilities and stockholders equity
Liabilities
Accounts payable		3800
Stockholders equity
common stock	5000
Retained earning [37000+21700-4300]	54400
Total stockholders equity		59400
Total liabilities and stockholders equity		63200

**Total asset =Total liabilities +stockholders equity

**Retained earning at end =RE at beginning + net income -dividend