Concept explainers
Preparing the financial budget—budgeted
Barker, Inc. has the following balance sheet at December 31, 2018:
s
Barker projects the following transactions for 2019:
Sales on account, $20,000
Cash receipts from customers from sales on account, $17,600
Purchase of raw-materials on account, $7,000
Payments on account, $3,500
Total cost of completed products, $16,600, which includes the following:
Raw materials used, $7,100
Direct labor costs incurred and paid, $3,900
Cost of goods sold, $14,800
Selling and administrative costs incurred and paid, $500
Purchase of equipment, paid in 2019, $2,000
Prepare a budgeted balance sheet for Barker, Inc. for December 31, 2019.
(Hint: It may be helpful to trace the effects of each transaction on the
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