In: Accounting
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 | $ | 9,800 |
Supplies inventory | $ | 4,000 |
Equipment | $ | 42,500 |
Accumulated depreciation | $ | 17,200 |
Accounts payable | $ | 3,500 |
Common stock | $ | 5,000 |
Retained earnings | ? | |
The beginning balance of retained earnings was $34,000, net income is budgeted to be $18,100, and dividends are budgeted to be $4,100.
Required:
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 | ||
Cash ($56,500-$9,800-$4,000-$25,300) | $ 17,400 | |
Accounts receivable | $ 9,800 | |
Supplies inventory | $ 4,000 | |
Total current assets | $ 31,200 | |
Plant and equipment | ||
Equipment | $ 42,500 | |
Accumulated depreciation | $ (17,200) | |
Plant and equipment, net | $ 25,300 | |
Total assets | $ 56,500 | |
Liabilities and Stockholders' Equity | ||
Current liabilities | ||
Accounts payable | $ 3,500 | |
Stockholders' equity: | ||
Common stock | $ 5,000 | |
Retained earnings (34,000+18,100-4,100) | $ 48,000 | |
Total stockholders' equity | $ 53,000 | |
Total liabilities and stockholders' equity | $ 56,500 |
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