BALLENTINE COMPANY Post-Closing Trial Balance December 31, 2018 Account Debit Credit Cash $ 45,000 Accounts Receivable 17,900 Raw Materials Inventory 7,000 Finished Goods Inventory 25,900 Equipment 120,000 Accumulated Depreciation $ 20,000 Accounts Payable 17,300 Common Stock 85,000 Retained Earnings 93,500 $ 215,800 Totals $215,800 $ 305,500 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead 40,000 12,500 2,600 Depreciation 800 Insurance and property ta»es 1,100 Budgeted cost of goods sold Budgeted selling and administrative expenses: 71,300 Salaries expense 7,000 Rent expense 3,500 Insurance expense 2,000 Depreciation expense 350 Supplies expense 3,055 Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) 263,500 44,000 34,000
BALLENTINE COMPANY Post-Closing Trial Balance December 31, 2018 Account Debit Credit Cash $ 45,000 Accounts Receivable 17,900 Raw Materials Inventory 7,000 Finished Goods Inventory 25,900 Equipment 120,000 Accumulated Depreciation $ 20,000 Accounts Payable 17,300 Common Stock 85,000 Retained Earnings 93,500 $ 215,800 Totals $215,800 $ 305,500 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead 40,000 12,500 2,600 Depreciation 800 Insurance and property ta»es 1,100 Budgeted cost of goods sold Budgeted selling and administrative expenses: 71,300 Salaries expense 7,000 Rent expense 3,500 Insurance expense 2,000 Depreciation expense 350 Supplies expense 3,055 Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) 263,500 44,000 34,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Preparing a financial budget—
Ballentine Company has the following post-closing
The company’s accounting department has gathered the following budgeting information for the first quarter of 2019:
Additional information:
- Direct materials purchases are paid 50% in the quarter purchased and 50%, in the next quarter.
- Direct labor, ma following budgeted income statement nufacturing
overhead selling and administrative costs, and income tax expense are paid in the quarter incurred. - Accounts payable at December 31, 2018 are paid in the first quarter of 2019.
Requirements
- Prepare Ballentine Company’s budgeted income statement for the first quarter of 2019.
- Prepare Ballentine Company’s budgeted balance sheet as of March 31, 2019.
Transcribed Image Text:BALLENTINE COMPANY
Post-Closing Trial Balance
December 31, 2018
Account
Debit
Credit
Cash
$ 45,000
Accounts Receivable
17,900
Raw Materials Inventory
7,000
Finished Goods Inventory
25,900
Equipment
120,000
Accumulated Depreciation
$ 20,000
Accounts Payable
17,300
Common Stock
85,000
Retained Earnings
93,500
$ 215,800
Totals
$215,800
Transcribed Image Text:$ 305,500
Budgeted total sales, all on account
Budgeted direct materials to be purchased and used
Budgeted direct labor cost
Budgeted manufacturing overhead costs:
Variable manufacturing overhead
40,000
12,500
2,600
Depreciation
800
Insurance and property ta»es
1,100
Budgeted cost of goods sold
Budgeted selling and administrative expenses:
71,300
Salaries expense
7,000
Rent expense
3,500
Insurance expense
2,000
Depreciation expense
350
Supplies expense
3,055
Budgeted cash receipts from customers
Budgeted income tax expense
Budgeted purchase and payment for capital expenditures
(additional equipment)
263,500
44,000
34,000
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