The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Cash Accounts receivable. Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings Ending Balances $9,000 $ 2,400 $ 38,500 $ 15,600 $ 2,700 $ 5,000 ? The beginning balance of retained earnings was $26,000, net income is budgeted to be $15,400, and dividends are budgeted to be $5,400.
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Cash Accounts receivable. Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings Ending Balances $9,000 $ 2,400 $ 38,500 $ 15,600 $ 2,700 $ 5,000 ? The beginning balance of retained earnings was $26,000, net income is budgeted to be $15,400, and dividends are budgeted to be $5,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi,
I need help determining the two missing values in the attached table. The cells are highlighted red.
Thank you.

Transcribed Image Text:The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in
preparing its budgeted balance sheet for next year:
Cash
Accounts receivable
Supplies inventory
Equipment
Accumulated depreciation
Accounts payable
Common stock
Retained earnings
Ending
Balances
?
$ 9,000
$ 2,400
$ 38,500
$ 15,600
$ 2,700
$ 5,000
?
The beginning balance of retained earnings was $26,000, net income is budgeted to be $15,400, and dividends are budgeted to be
$5,400.

Transcribed Image Text:Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Current assets:
Cash
Answer is complete but not entirely correct.
Mecca Copy
Budgeted Balance Sheet
Assets
Accounts receivable
Supplies inventory
Total current assets
Plant and equipment:
Equipment
Accumulated depreciation
Plant and equipment, net
Total assets
Current liabilities:
Liabilities and Stockholders' Equity
Accounts payable
Stockholders' equity:
Common stock
Retained earnings
9,000
2,400
0
Total stockholders' equity
Total liabilities and stockholders' equity
38,500
(15,600)
$ 5,000
0
0
X
$ 11,400
22,900
$ 34,300
$ 2,700
$
5,000
7,700
Expert Solution

Step 1
Balance sheet is one of financial statements which includes assets and liabilities. Total of assets liabilities should be equal because of double entry accounting system.
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