Preparing a financial budget—budgeted balance sheet Use the following June actual ending balances and July 31, 2018, budgeted amounts for Omas to prepare a budgeted balance sheet for July 31, 2018. June 30, Merchandise Inventory balance, $17,770 July purchase of Merchandise Inventory, $4,400, paid in cash July payments of Accounts Payable, $8,400 June 30 Accounts Payable balance, $10,700 June 30 Furniture and Fixtures balance, $34,100; Accumulated Depreciation balance, $29,880 June 30 total stockholders’ equity balance, $28,020 July Depreciation Expense, $500 Cost of Goods Sold, 60% of Saks Other July expenses including income tax $2,000, paid in cash June 30 Cash balance, $11,600 July budgeted Sales, all on account, $12,690 June 30 Accounts Receivable balance, $5,130 July cash receipts from collections on account, $14,700 (Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.)
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—budgeted
Use the following June actual ending balances and July 31, 2018, budgeted amounts for Omas to prepare a budgeted balance sheet for July 31, 2018.
- June 30, Merchandise Inventory balance, $17,770
- July purchase of Merchandise Inventory, $4,400, paid in cash
- July payments of Accounts Payable, $8,400
- June 30 Accounts Payable balance, $10,700
- June 30 Furniture and Fixtures balance, $34,100;
Accumulated Depreciation balance, $29,880 - June 30 total
stockholders’ equity balance, $28,020 - July Depreciation Expense, $500
- Cost of Goods Sold, 60% of Saks
- Other July expenses including income tax $2,000, paid in cash
- June 30 Cash balance, $11,600
- July budgeted Sales, all on account, $12,690
- June 30
Accounts Receivable balance, $5,130 - July cash receipts from collections on account, $14,700
(Hint: It may be helpful to trace the effects of each transaction on the
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