The management of Mecca Copy, a photocopying center located on University Avenue

Question

The management of Mecca 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 receivable Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings $ 9,400 $ 3,200 40,500 $16,400 $3,100 $ 5,000 The beginning balance of retained earnings was $30,000, net income is budgeted to be $20,200, and dividends are budgeted to be $3,300 Required Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Explanation / Answer

Staement of retained earnings opening balance of retained earnings 30,000 Add net income 20,200 less dividend paid -3,300 Closing balance of retained earnings 46,900 Trial balance Debit Credit cash (balancing) 18,300 Accounts reeivable 9,400 Supplies inventory 3,200 Equipment 40,500 Accumulated Depreciation 16,400 Accounts payable 3,100 Common Stock 5,000 Retained earnings 46,900 total 71,400 71,400 Budgeted Balance sheet Assets Current assets cash 18,300 Account receivable 9,400 supplies inventory 3,200 total current assetws 30,900 plant and Equipment Equipment 40,500 less:Accumulated Depreciation -16,400 plant and Equipment,net 24,100 total Assets 55,000 liabilities & Stockholders Equity liabilities. Accounts payable 3,100 Stockholder's Equity Common stock 5,000 Retained earnings 46,900 total stockholders Equity 51900 total liabilities & Stockholders Equity 55,000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.