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-budgetedincomeStatement(15 Points! . The manag ement of Academic Copy, a photoc

ID: 2571209 • Letter: #

Question

-budgetedincomeStatement(15 Points! . The manag ement of Academic 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 recelvable Supplies inventory Equipment Accounts payable Common stock The beginning balance of retained earnings was $42,000, net income is budgeted to be $17,200, and dividends are budgeted to be $7,000. Retained earnings Required: Prepare the company's budgeted balance sheet. Assets Current assets: Cash* Supplies inventory Total current assets Plant and equipment: Equipment Accumulated depreciation Plant and equipment, net Total assets Liabilities and Current liabilities: Accounts payable Stockholders' equity: Conmon stock Retained earnings# Total stockholders equity Total liabilites and

Explanation / Answer

Total Asset=Total liabilites and stockholders equity = 64000

Retained earning at end =Beginning+net income -dividend

= 42000+17200-7000

= 52200

current asset =Total asset -plant ,net

=64000-38000=26000

Asset current asset cash 8800 Account receivable [26000-8800-4200] 13000 supplies inventory 4200 Total current asset 26000 Plant and equipment equipment 56000 Accumulated depreciation -18000 Plant and equipment,net 38000 Total asset 64000 Liabilities and stockholders equity Accounts payable 3800 stockholders equity common stock 8000 Retained earning 52200 Total stockholders equity 60200 Total liabilities and stockholders equity 64000