The management of Mecca Copy, a photocopying center located on University Avenue
ID: 2575927 • Letter: T
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 earnin $ 9,100 $ 2,600 $ 39,000 $ 15,800 $ 2,800 $ 5,000 The beginning balance of retained eamings was $27,000, net income is budgeted to be $16,600, and dividends are budgeted to be $3,100 Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Mecca Copy Budgeted 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' equityExplanation / Answer
Mecca copy
Budgeted balance sheet
Assets
Amount
Amount
Current Assets:
Accounts receivable
$9,100
Supplies Inventory
$2,600
Cash (Balancing figure)
$19,600
Total current assets
$31,300
Plant and equipment, net:
Equipment
$39,000
Less: Acc Depreciation
($15,800)
Plant and equipment, net:
$23,200
Total Assets
$54,500
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable
$2,800
Shareholders’ equity
Common stock
$5,000
Retained earnings
Opening retained earnings
$27,000
Add: Net profit
$16,600
Less: Dividends
($3,100)
closing Retained earnings
$46,700
Total shareholders’ equity
$51,700
Total liabilities and shareholders’ equity
$54,500
Mecca copy
Budgeted balance sheet
Assets
Amount
Amount
Current Assets:
Accounts receivable
$9,100
Supplies Inventory
$2,600
Cash (Balancing figure)
$19,600
Total current assets
$31,300
Plant and equipment, net:
Equipment
$39,000
Less: Acc Depreciation
($15,800)
Plant and equipment, net:
$23,200
Total Assets
$54,500
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable
$2,800
Shareholders’ equity
Common stock
$5,000
Retained earnings
Opening retained earnings
$27,000
Add: Net profit
$16,600
Less: Dividends
($3,100)
closing Retained earnings
$46,700
Total shareholders’ equity
$51,700
Total liabilities and shareholders’ equity
$54,500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.