1. (TCO 2) Gardenia Company has the following projected account balances for Jun
ID: 2500063 • Letter: 1
Question
1. (TCO 2) Gardenia Company 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
$28,000
Explanation / Answer
Answer:
Budgeted Income Statement Particulars Amount ($) Sales 800000 COGS: Depreciation 36000 Materials used 200000 Insurance 4000 Wages 140000 Utilities 16000 Maintenance 28000 424000 Gross profit 376000 Operating expenses: Selling expenses 50000 Office salaries 80000 130000 Net income 246000Related Questions
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