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: Ending Balances Cash ? Accounts receivable $ 9,000 Supplies inventory $ 2,400 Equipment $ 38,500 Accumulated depreciation $ 15,600 Accounts payable $ 2,700 Common stock $ 5,000 Retained earnings ? 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. Required: Prepare the company’s budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
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.
The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted
| Ending Balances | ||
| Cash | ? | |
| $ | 9,000 | |
| Supplies inventory | $ | 2,400 |
| Equipment | $ | 38,500 |
| $ | 15,600 | |
| Accounts payable | $ | 2,700 |
| Common stock | $ | 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.
Required:
Prepare the company’s budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
