practice problem chapters 22 PR-5A Show details and steps. 47%, 4:22 PM K Ch20 p
ID: 2532110 • Letter: P
Question
practice problem chapters 22 PR-5A Show details and steps.
47%, 4:22 PM K Ch20 practice... Q : PR 22-5A Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, the following tentative trial balance as of December 31 2016, is prepared by the Accounting Department of Regina Soap Co v1. Budgeted net income, $96,600 Accounts Recelvable.. Finished Goods 69,300 Prepaid Expenses Plant and Equipment... 2,600 325000 $156,200 62,000 160000 290,700 5688900 Common Stock, $10 par 688,000 Factory output and sales for 2017 are expected to total 200,000 units of product, which are to be solkd at $5,00 per unit. The quantities and costs of the inventories at December 31, 2017, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Cost of goads manufactured and Direct labor Factory overhead Depreciation of plant and equipment.··········· Selling expensesc Miscellaneous selling expense 6,000 Office and officers salaries.. accounts receivable, prepaid expenses, and accounts payable at the end of the year are noe expected to dilfer significantly from the bezinning balances. Federal income tax of $30,000 on 2017 taxable income will be paid during 2017. Regular quar terly cash dividends of s0.15 per share June, September, and Decemb 18,000 shares of common stock outstanding. is anticipated that fixed assets will be purchased for $75,000 cash in May. are expected to be declared and paid in March, 1. Prepare budgeted income statement for 2017. 2. Prepare a budgeted balance sheet as of December 31, 2017, withExplanation / Answer
Working:
REGINA SOAP COMPANY Income statement for the year ended December 31, 2017 Sales Revenue 1000000 Cost of goods sold 482000 Gross Profit 518000 Selling and admn.expenses: Selling expenses: Salaes Salaries and commission 136000 Advertising 64000 Miscellaneous selling exp. 56000 Total Selling expenses 256000 Administrative Expenses: Office and officer salaries 96400 Supplies 25000 Miscellaneous admn. Exp. 14000 Totl administrative expenses 135400 Total selling and admn. Expenses 391400 Net operating income 126600 Income Tax 30000 Net income 96600Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.