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	$	9,100
Supplies inventory	$	2,600
Equipment	$	39,000
Accumulated depreciation	$	15,800
Accounts payable	$	2,800
Common stock	$	5,000
Retained earnings		?

The beginning balance of retained earnings was $27,000, net income is budgeted to be $16,600, and dividends are budgeted to be $3,100.

Required:

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

Answer 1

MECCA CORP.
Budgeted Balance Sheet
Assets:
Cash		$13,400
Accounts receivable,net		$9,100
Supplies Inventory		$2,600
Equipment	$39,000
Less:Accumulated Depreciation	$15,800
Equipment, net		$23,200
Total Assets		$48,300
Liabilities and Stockholder's Equity:
Accounts Payable		$2,800
Common Stock		$5,000
Retained Earnings(Note)		$40,500
Total Liabilities and Stockholder's Equity		$48,300
Note:
Calculation of Closing Retained Earnings
Beginning Retained earnings	$27,000
Add:Net Income	$16,600
Less:Dividend Paid	-$3,100
Closing Retained Earnings	$40,500
Cash Balance is the Balancing Figure