Question

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	$	10,000
Supplies inventory	$	4,400
Equipment	$	43,500
Accumulated depreciation	$	17,600
Accounts payable	$	3,700
Common stock	$	5,000
Retained earnings		?

The beginning balance of retained earnings was $36,000, net income is budgeted to be $20,500, and dividends are budgeted to be $3,700.

Required:

Prepare the company’s budgeted balance sheet.

Answer 1

	Retained earnings
	opening,			36,000
	Add net income			20,500
	less dividends			-3,700
	closing retained earnings			52,800
	Budgeted Balance Sheet
	Assets
	Cash				21,200
	Accounts receivable				10,000
	Supplies inventory				4,400
	Equipment			43,500
	Accumulated depreciation			17,600	25,900
	Total Assets				61,500
	liabilties & stockholder's Equity
	liabilities.
	Accounts payable				3,700
	Stockholders Equity
	Common stock			5,000
	Retained earnings			52,800
	total stockholders Equity				57,800
	total liabilities & stockholders Equity				61,500