The management of Mecca Copy. a photocopying center located on Unlversity Avenue

ID: 2554183 • Letter: T

Question

The management of Mecca Copy. a photocopying center located on Unlversity Avenue, has complled the following data to use In preparing Its budgeted balance sheet for next year Ending Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation Accounts payable Conmon stock Retained earnings $ 9,888 $ 4,888 $ 42,588 $ 17,288 $ 3,588 $ 5,888 The beginning balance of retalned earnings was $34.000, net Income Is budgeted to be $18,100, and divMdends are budgeted to be $4.100. Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be Indicated by a minus sign.) 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

Explanation / Answer

Answers

Statement of Retained Earnings

Beginning Balance

$34000

(+) Net Income

$18100

(-) Dividends

$4100

Ending Balance

$48000

Total LIABILITIES & STOCKHOLDERS ‘ EQUITY

$56,500

(-) Total ASSETS, excluding cash balance

$39,100

Difference = Cash Balance

$17,400

ASSETS

Current Assets:

Cash

17400

Accounts receivables

9800

Supplies Inventory

4000

Total Current Assets

$31200

Plant & Equipment:

Equipment

42500

Accumulated Depreciation

-17200

Plant & Equipment, net

$25300

Total ASSETS

$56500

LIABILITIES & STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts Payable

$3500

Stockholders’ Equity:

Common Stock

5000

Retained Earnings

48000

Total Stockholders' Equity

$53000

Total LIABILITIES & STOCKHOLDERS" EQUITY