ompany has the following projected account balances for June 30, 20X9: Accounts
ID: 2427907 • Letter: O
Question
ompany has the following projected account balances for June 30, 20X9:
Accounts payable
$60,000
Sales
$800,000
Accounts receivable
$100,000
Capital stock
$400,000
Depreciation, factory
$36,000
Retained earnings
?
Inventories (5/31 & 6/30)
$180,000
Cash
$56,000
Direct materials used
$200,000
Equipment, net
$240,000
Office salaries
$80,000
Buildings, net
$400,000
Insurance, factory
$4,000
Utilities, factory
$16,000
Plant wages
$140,000
Selling expenses
$50,000
Bonds payable
$160,000
Maintenance, factory
$28,000
Prepare a budgeted income statement AND a budgeted balance sheet as of June 30, 20X9. (Points : 25)
Accounts payable
$60,000
Sales
$800,000
Accounts receivable
$100,000
Capital stock
$400,000
Depreciation, factory
$36,000
Retained earnings
?
Inventories (5/31 & 6/30)
$180,000
Cash
$56,000
Direct materials used
$200,000
Equipment, net
$240,000
Office salaries
$80,000
Buildings, net
$400,000
Insurance, factory
$4,000
Utilities, factory
$16,000
Plant wages
$140,000
Selling expenses
$50,000
Bonds payable
$160,000
Maintenance, factory
$28,000
Explanation / Answer
Budgeted Income Statement Particulars Amount Sales 800,000.00 Total revenues 800,000.00 Direct materials used 200,000.00 Plant wages 140,000.00 Utilities, factory 16,000.00 Maintenance, factory 28,000.00 Insurance, factory 4,000.00 Office salaries 80,000.00 Depreciation, factory 36,000.00 Selling expenses 50,000.00 Total Expenses 554,000.00 Net Income 246,000.00 Budgeted Balance Sheet LIABILITIES AMOUNT ASSETS AMOUNT Stockholder Equity Equipment, net 240,000.00 Capital stock 400,000.00 Buildings, net 400,000.00 Retained earnings Inventories (5/31 & 6/30) 180,000.00 Opening Balance 110,000.00 Accounts receivable 100,000.00 Add:: Net Income 246,000.00 Cash 56,000.00 Closing Balance 356,000.00 Total Stockholder Equity 756,000.00 Bonds payable 160,000.00 Accounts payable 60,000.00 976,000.00 976,000.00
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