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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash $102,200 Accounts Receivable 173,700 Finished Goods 36,500 Work in Process 24,300 Materials 40,000 Prepaid Expenses 3,000 Plant and Equipment 470,100 Accumulated Depreciation—Plant and Equipment $202,100 Accounts Payable 116,100 Common Stock, $10 par 350,000 Retained Earnings 181,600 $849,800 $849,800 Factory output and sales for 20Y9 are expected to total 23,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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: Estimated Costs and Expenses Fixed (Total for Year) Variable (Per Unit Sold) Cost of goods manufactured and sold: Direct materials _ $23 Direct labor _ 7 Factory overhead: Depreciation of plant and equipment $23,000 _ Other factory overhead 7,100 4 Selling expenses: Sales salaries and commissions 82,600 11.5 Advertising 69,000 _ Miscellaneous selling expense 6,000 2 Administrative expenses: Office and officers salaries 54,300 5.5 Supplies 2,800 1 Miscellaneous administrative expense 1,400 1.5 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $164,200 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $127,000 cash in May. Required: 1. Prepare a budgeted income statement for 20Y9. Regina Soap Co.Budgeted Income StatementFor the Year Ending December 31, 20Y9 $- Select - Cost of goods sold: $- Select - - Select - - Select - Cost of goods sold fill in the blank b7db4b014fdb042_9 Gross profit $fill in the blank b7db4b014fdb042_10 Operating expenses: Selling expenses: $- Select - - Select - - Select - Total selling expenses $fill in the blank b7db4b014fdb042_17 Administrative expenses: $- Select - - Select - - Select - Total administrative expenses fill in the blank b7db4b014fdb042_24 Total operating expenses fill in the blank b7db4b014fdb042_25 Income before income tax $fill in the blank b7db4b014fdb042_26 - Select - $- Select - 2. Prepare a budgeted balance sheet as of December 31, 20Y9. Regina Soap Co. Budgeted Balance Sheet December 31, 20Y9 Assets Current assets: $fill in the blank 27473ef60045059_2 fill in the blank 27473ef60045059_4 Inventories: $fill in the blank 27473ef60045059_6 fill in the blank 27473ef60045059_8 fill in the blank 27473ef60045059_10 fill in the blank 27473ef60045059_11 fill in the blank 27473ef60045059_13 Total current assets $fill in the blank 27473ef60045059_14 Property, plant, and equipment: $fill in the blank 27473ef60045059_16 fill in the blank 27473ef60045059_18 Total property, plant, and equipment fill in the blank 27473ef60045059_19 Total assets $fill in the blank 27473ef60045059_20 Liabilities Current liabilities: $fill in the blank 27473ef60045059_22 Stockholders' Equity $fill in the blank 27473ef60045059_24 fill in the blank 27473ef60045059_26 Total stockholders’ equity fill in the blank 27473ef60045059_27 Total liabilities and stockholders’ equity $fill in the blank 27473ef60045059_28

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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash $102,200 Accounts Receivable 173,700 Finished Goods 36,500 Work in Process 24,300 Materials 40,000 Prepaid Expenses 3,000 Plant and Equipment 470,100 Accumulated Depreciation—Plant and Equipment $202,100 Accounts Payable 116,100 Common Stock, $10 par 350,000 Retained Earnings 181,600 $849,800 $849,800 Factory output and sales for 20Y9 are expected to total 23,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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: Estimated Costs and Expenses Fixed (Total for Year) Variable (Per Unit Sold) Cost of goods manufactured and sold: Direct materials _ $23 Direct labor _ 7 Factory overhead: Depreciation of plant and equipment $23,000 _ Other factory overhead 7,100 4 Selling expenses: Sales salaries and commissions 82,600 11.5 Advertising 69,000 _ Miscellaneous selling expense 6,000 2 Administrative expenses: Office and officers salaries 54,300 5.5 Supplies 2,800 1 Miscellaneous administrative expense 1,400 1.5 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $164,200 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $127,000 cash in May. Required: 1. Prepare a budgeted income statement for 20Y9. Regina Soap Co.Budgeted Income StatementFor the Year Ending December 31, 20Y9 $- Select - Cost of goods sold: $- Select - - Select - - Select - Cost of goods sold fill in the blank b7db4b014fdb042_9 Gross profit $fill in the blank b7db4b014fdb042_10 Operating expenses: Selling expenses: $- Select - - Select - - Select - Total selling expenses $fill in the blank b7db4b014fdb042_17 Administrative expenses: $- Select - - Select - - Select - Total administrative expenses fill in the blank b7db4b014fdb042_24 Total operating expenses fill in the blank b7db4b014fdb042_25 Income before income tax $fill in the blank b7db4b014fdb042_26 - Select - $- Select - 2. Prepare a budgeted balance sheet as of December 31, 20Y9. Regina Soap Co. Budgeted Balance Sheet December 31, 20Y9 Assets Current assets: $fill in the blank 27473ef60045059_2 fill in the blank 27473ef60045059_4 Inventories: $fill in the blank 27473ef60045059_6 fill in the blank 27473ef60045059_8 fill in the blank 27473ef60045059_10 fill in the blank 27473ef60045059_11 fill in the blank 27473ef60045059_13 Total current assets $fill in the blank 27473ef60045059_14 Property, plant, and equipment: $fill in the blank 27473ef60045059_16 fill in the blank 27473ef60045059_18 Total property, plant, and equipment fill in the blank 27473ef60045059_19 Total assets $fill in the blank 27473ef60045059_20 Liabilities Current liabilities: $fill in the blank 27473ef60045059_22 Stockholders' Equity $fill in the blank 27473ef60045059_24 fill in the blank 27473ef60045059_26 Total stockholders’ equity fill in the blank 27473ef60045059_27 Total liabilities and stockholders’ equity $fill in the blank 27473ef60045059_28

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:

Cash	$102,200
Accounts Receivable	173,700
Finished Goods	36,500
Work in Process	24,300
Materials	40,000
Prepaid Expenses	3,000
Plant and Equipment	470,100
Accumulated Depreciation—Plant and Equipment		$202,100
Accounts Payable		116,100
Common Stock, $10 par		350,000
Retained Earnings		181,600
	$849,800	$849,800

Factory output and sales for 20Y9 are expected to total 23,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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:

	Estimated Costs and Expenses
	Fixed (Total for Year)	Variable (Per Unit Sold)
Cost of goods manufactured and sold:
Direct materials	_		$23
Direct labor	_		7
Factory overhead:
Depreciation of plant and equipment	$23,000		_
Other factory overhead	7,100		4
Selling expenses:
Sales salaries and commissions	82,600		11.5
Advertising	69,000		_
Miscellaneous selling expense	6,000		2
Administrative expenses:
Office and officers salaries	54,300		5.5
Supplies	2,800		1
Miscellaneous administrative expense	1,400		1.5

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $164,200 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $127,000 cash in May.

Required:

1. Prepare a budgeted income statement for 20Y9.

Regina Soap Co.Budgeted Income StatementFor the Year Ending December 31, 20Y9

			$- Select -
Cost of goods sold:
		$- Select -
		- Select -
		- Select -
Cost of goods sold			fill in the blank b7db4b014fdb042_9
Gross profit			$fill in the blank b7db4b014fdb042_10
Operating expenses:
Selling expenses:
	$- Select -
	- Select -
	- Select -
Total selling expenses		$fill in the blank b7db4b014fdb042_17
Administrative expenses:
	$- Select -
	- Select -
	- Select -
Total administrative expenses		fill in the blank b7db4b014fdb042_24
Total operating expenses			fill in the blank b7db4b014fdb042_25
Income before income tax			$fill in the blank b7db4b014fdb042_26
			- Select -
			$- Select -

2. Prepare a budgeted balance sheet as of December 31, 20Y9.

Regina Soap Co. Budgeted Balance Sheet December 31, 20Y9
Assets
Current assets:
		$fill in the blank 27473ef60045059_2
		fill in the blank 27473ef60045059_4
Inventories:
	$fill in the blank 27473ef60045059_6
	fill in the blank 27473ef60045059_8
	fill in the blank 27473ef60045059_10	fill in the blank 27473ef60045059_11
		fill in the blank 27473ef60045059_13
Total current assets			$fill in the blank 27473ef60045059_14
Property, plant, and equipment:
		$fill in the blank 27473ef60045059_16
		fill in the blank 27473ef60045059_18
Total property, plant, and equipment			fill in the blank 27473ef60045059_19
Total assets			$fill in the blank 27473ef60045059_20
Liabilities
Current liabilities:
			$fill in the blank 27473ef60045059_22
Stockholders' Equity
		$fill in the blank 27473ef60045059_24
		fill in the blank 27473ef60045059_26
Total stockholders’ equity			fill in the blank 27473ef60045059_27
Total liabilities and stockholders’ equity			$fill in the blank 27473ef60045059_28

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