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 $ 8,100 $ 3,200 $ 34,000 $ 16,000 $ 1,800 $ 5,000 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.) Mecca Copy Budgeted Balance Sheet Assets Current assets: Total current assets Plant and equipment: Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity: Total stockholders' equity Total liabilities and stockholders' equity 0 < Prev 9 of 10 Next >

Answer 1

Balance Sheet Assets Mecca Copy Statement of Retained Earnings Retained earnings (beginning balance) $ Less: Net income $ Less: Dividends $ Retained earnings (ending balance) $ 28,000 11,500 (4,800) 34,700 Current Assets Cash Accounts receivable Supplies Inventory Total Current Assets Non-current assets $ $ $ 12,200 8,100 3,200 $ 23,500 Cash = Total Liabilities & Stockholders' Equity - Total assets (except cash) ($ 41,500 - $ 29,300) $ 12,200 $ $ 34,000 16,000 Equipment Less: Accumulated depreciation equipment Net Equipment Total Assets $ $ 18,000 41,500 $ $ 1,800 1,800 Liabilities and Stockholders' Equity Current liabilities Accounts Payable Total Liabilities Shareholders' Equity Common Stock $ 5,000 Retained Earnings $ 34,700 Total Shareholders' Equity Total Liabilities and Stockholders' Equity $ $ 39,700 41,500