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	$	8,800
Supplies inventory	$	5,300
Equipment	$	37,500
Accumulated depreciation	$	15,200
Accounts payable	$	2,500
Common stock	$	5,000
Retained earnings		?

The beginning balance of retained earnings was $35,000, net income is budgeted to be $19,900, and dividends are budgeted to be $2,900.

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

Answer 1

Answer
Mecca Copy
Budgeted Balance Sheet
Particulars	Amounts	Amounts
Assets
Current assets:
Cash (37200-5300-8800)	$ 23,100
Accounts receivable	$   8,800
Supplies inventory	$   5,300
Total current assets		$37,200
Plant and equipment:
Equipment	$ 37,500
Accumulated depreciation	$-15,200
Plant and equipment, net		$22,300
Total assets		$59,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$ 2,500
Stockholders' equity:
Common stock	$   5,000
Retained earnings (35000+19900-2900)	$ 52,000
Total stockholders' equity		$57,000
Total liabilities and stockholders' equity		$59,500