The Management of FastCopy Inc, a Photocopying center, completed the following data for use in preparing its budgeted balance sheet for the next year: Ending Balances Cash ? Accounts Recievable $8,100 Supplies Inventory $3,200 Equipment $34,000 Accumulated Depreciation $16,000 Accounts Payable $1,800 Common Stock $5,000 Retained Earnings ? The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800. Prepare a properly titled and formatted balance sheet for FastCopy, Inc. Grading will be applied to proper formatting and accuracy of results. Also, prepare a 2nd properly formatted balance sheet with net income budgeted to be $87,500 and dividends are budgeted to be $10,000. Consider the second balance sheet you created and provide an explanation of the likely other balance accounts that would change (increase/decrease/remain the same) in response to such a significant increase in net income. A properly formatted balance sheet would include the proper heading and the Assets / Liabilities / Shareholders Equity appearing in the proper columns with column totals that equal as per the accounting equation: Assets = Liabilities and Shareholder Equity.
The Management of FastCopy Inc, a Photocopying center, completed the following data for use in preparing its budgeted
Ending Balances
Cash ?
Accounts Recievable $8,100
Supplies Inventory $3,200
Equipment $34,000
Accounts Payable $1,800
Common Stock $5,000
The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800.
Prepare a properly titled and formatted balance sheet for FastCopy, Inc. Grading will be applied to proper formatting and accuracy of results. Also, prepare a 2nd properly formatted balance sheet with net income budgeted to be $87,500 and dividends are budgeted to be $10,000. Consider the second balance sheet you created and provide an explanation of the likely other balance accounts that would change (increase/decrease/remain the same) in response to such a significant increase in net income. A properly formatted balance sheet would include the proper heading and the Assets / Liabilities / Shareholders Equity appearing in the proper columns with column totals that equal as per the accounting equation: Assets = Liabilities and Shareholder Equity.
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