Prepare a budgeted balance sheet as of july 31. Please present your solution and balance sheet in good form . C. The July 31 inventory balance is budgeted at P40,000.d. Operating expenses for July are budgeted at P51,000, exclusive ofdepreciation. These expenses will be paid in cash. Depreciation is budgetedat P2,000 for the month.e. The note payable on the June 30 balance sheet will be paid during July.The company's interest expense for July (on all borrowing) will be P500,which will be paid in cash.I. New warehouse equipment costing P9,000 will be purchased for cashduring July.g. During July, the company will borrow P18,000 from its bank by giving anew note payable to the bank for that amount. The new note will be due inone year. Problem 2The balance sheet of MikeLab, Inc., a distributor of photographic supplies,as of June 30 is given below:MikeLab, Inc.Balance SheetJune 30AssetsP8,00072,00030,000CashAccounts receivableInventory500,000Buildings and equipment, net of depreciationP610,000Total assetsLiabilities and EquityP90,000Accounts payable, suppliersNote payableShare capital, no parRetained earningsTotal liabilities and equity15,000420,00085,000P610,000MikeLab, Inc. has not budgeted previously, and for this reason it is limitingits master budget planning horizon to just one month ahead - namely, July. Thecompany has assembled the following budgeted data relating to July.a. Sales are budgeted at P250,000. Of these sales, P60,000 will be for cash;the remainder will be credit sales. One-half of a month's credit sales arecollected in the month the sales are made, and the remainder is collectedin the month following. All of the June 30 accounts receivable will becollected in July.b. Purchases of inventory are expected to total P200,000 during July. Thesepurchases will all be on account. Forty percent of all inventory purchasesare paid for in the month of purchase; the remainder is paid in thefollowing month. All of the June 30 accounts payable to suppliers will bepaid during July.

Single Step Income Statement is a method of expressing profit and loss statement that lists all…

Answered: Prepare a budgeted balance sheet as of…

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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Prepare a budgeted balance sheet as of july 31. Please present your solution and balance sheet in good form .

C. The July 31 inventory balance is budgeted at P40,000.
d. Operating expenses for July are budgeted at P51,000, exclusive of
depreciation. These expenses will be paid in cash. Depreciation is budgeted
at P2,000 for the month.
e. The note payable on the June 30 balance sheet will be paid during July.
The company's interest expense for July (on all borrowing) will be P500,
which will be paid in cash.
I. New warehouse equipment costing P9,000 will be purchased for cash
during July.
g. During July, the company will borrow P18,000 from its bank by giving a
new note payable to the bank for that amount. The new note will be due in
one year.

Problem 2
The balance sheet of MikeLab, Inc., a distributor of photographic supplies,
as of June 30 is given below:
MikeLab, Inc.
Balance Sheet
June 30
Assets
P8,000
72,000
30,000
Cash
Accounts receivable
Inventory
500,000
Buildings and equipment, net of depreciation
P610,000
Total assets
Liabilities and Equity
P90,000
Accounts payable, suppliers
Note payable
Share capital, no par
Retained earnings
Total liabilities and equity
15,000
420,000
85,000
P610,000
MikeLab, Inc. has not budgeted previously, and for this reason it is limiting
its master budget planning horizon to just one month ahead - namely, July. The
company has assembled the following budgeted data relating to July.
a. Sales are budgeted at P250,000. Of these sales, P60,000 will be for cash;
the remainder will be credit sales. One-half of a month's credit sales are
collected in the month the sales are made, and the remainder is collected
in the month following. All of the June 30 accounts receivable will be
collected in July.
b. Purchases of inventory are expected to total P200,000 during July. These
purchases will all be on account. Forty percent of all inventory purchases
are paid for in the month of purchase; the remainder is paid in the
following month. All of the June 30 accounts payable to suppliers will be
paid during July.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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