BUNCOMB COMPANY Post-Closing Trial Balance December 31, 2018 Account Debit Credit Cash $ 22,000 Accounts Receivable 20,000 Merchandise Inventory 15,500 Prepaid Insurance 2,400 Equipment and Fixtures 30,000 Accumulated Depreciation $ 20,000 Accounts Payable Salaries and Commissions Payable 26,000 6,700 Common Stock 14,000 Retained Earnings 23,200 Totals $ 89,900 S 89,900 Budgeted total sales, all on account $ 121,700 Budgeted purchases of merchandise inventory, all on account Budgeted cost of goods sold Budgeted selling and administrative expenses: 61,200 60,850 Commissions expense 6,085 Salaries expense 3,000 Rent expense 4,100 Depreciation expense 900 Insurance expense 300 Budgeted cash receipts from customers Budgeted cash payments for merchandise inventory Budgeted cash payments for salaries and commissions Budgeted income tax expense 126,450 67,925 14,836 4,700
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.
Preparing a financial budget—
Buncomb 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;
Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount.
Requirements
- Prepare a budgeted income statement for the quarter ended March 31, 2019.
- Prepare budgeted balance sheet as of March 31, 2019.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
