Chapter 22, Problem

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.

1. a. June 30 Merchandise Inventory balance, $17,770
2. b. July purchase of Merchandise Inventory, $4,400, paid in cash
3. c. July payments of Accounts Payable, $8,400
4. d. June 30 Accounts Payable balance, $10,700
5. e. June 30 Furniture and Fixtures balance, $34,100; Accumulated Depreciation balance, $29,880
6. f. June 30 total stockholders’ equity balance, $28,020
7. g. July Depreciation Expense, $500
8. h. Cost of Goods Sold, 60% of sales
9. i. Other July expenses, including income tax, $2,000, paid in cash
10. j. June 30 Cash balance, $11,600
11. k. July budgeted sales, all on account, $12,600
12. l. June 30 Accounts Receivable balance, $5,130
13. m. 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.)