Use the following March operatinginformation and February 28 account balances to

Question

   Use the following March operatinginformation and February 28 account balances to prepare a budgetedbalance sheet for oleanders at March 31, 2008. March operating activity information: Budgeted sales, $12,200, all on credit Cost of goods sold, 60% of sales March depreciation expense, $600 Cash payments for March expenses, including income tax, total$5,000 Cash collected from customers on account, $14,300 Cash payments for inventory, $4,600 Cash payments of accounts payable, $8,200                                     +                 +              +                 +                    = Cash   Accounts Receivable Inventory Equipment (Accumulated Depreciation Accounts Payable Owner's Equity February 28 balance    $11,400 $5,150 $17,720 $34,800 $(29,870) $10,500 $28,700 Sales on credit Cost of goods sold Depreciation expense Operating expense Collections on Account Payments for inventory Payments on Account March 31 balance Requirements: 1. Complete the worksheet using the planned March operatingactivity and cash transactions. 2. Prepare a budgeted balance sheet for Oleanders as of March31, 2008. Can someone please help me because I tried to do it but cannotfigure it out.    Use the following March operatinginformation and February 28 account balances to prepare a budgetedbalance sheet for oleanders at March 31, 2008. March operating activity information: Budgeted sales, $12,200, all on credit Cost of goods sold, 60% of sales March depreciation expense, $600 Cash payments for March expenses, including income tax, total$5,000 Cash collected from customers on account, $14,300 Cash payments for inventory, $4,600 Cash payments of accounts payable, $8,200                                     +                 +              +                 +                    = Cash   Accounts Receivable Inventory Equipment (Accumulated Depreciation Accounts Payable Owner's Equity February 28 balance    $11,400 $5,150 $17,720 $34,800 $(29,870) $10,500 $28,700 Sales on credit Cost of goods sold Depreciation expense Operating expense Collections on Account Payments for inventory Payments on Account March 31 balance Requirements: 1. Complete the worksheet using the planned March operatingactivity and cash transactions. 2. Prepare a budgeted balance sheet for Oleanders as of March31, 2008. Can someone please help me because I tried to do it but cannotfigure it out. Cash   Accounts Receivable Inventory Equipment (Accumulated Depreciation Accounts Payable Owner's Equity February 28 balance    $11,400 $5,150 $17,720 $34,800 $(29,870) $10,500 $28,700 Sales on credit Cost of goods sold Depreciation expense Operating expense Collections on Account Payments for inventory Payments on Account March 31 balance

Explanation / Answer

Budgeted Balance Sheet

31-Mar

A. Cash     + A/R     + Inventory + Equipment Acc. Dep.      = A/P    + Owners Equity Beginning Balance $11,400 $5,150 $17,720 $34,800 ($29,870)     = $10,500 $28,700 sales on credit $12,200     = $12,200 Cost of goods sold ($7,320)     = ($7,320) Depreciation expense ($600)     = ($600)     = Operating expense ($5,000)     = ($5,000) Collection on accounts $14,300 ($14,300)     = Payments for Inventory ($4,600) $4,600     = Payments on accounts ($8,200)     = ($8,200) March 31 balance $7,900 $3,050 $15,000 $34,800 ($30,470)     = $2,300 $27,980 B.

Budgeted Balance Sheet

31-Mar

ASSETS LIABBILITIES Cash $7,900 Accounts Payable $2,300 Accounts Receivable $3,050 Inventory $15,000 Owners Equity $27,980 Equipment $34,800 less accumulated dep. ($30,470) $4,330 Total $30,280 Total $30,280

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