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Concept explainers
Preparing the financial budget—budgeted
Learning Objective 4 FG inventory $3,150 |
Barker, Inc. has the following balance sheet at December 31, 2018:
BARKER, INC.Balance SheetDecember 31, 2018 | ||
Assets | ||
Current Assets | ||
Cash | $2,400 | |
1,400 | ||
Raw Materials Inventory | 500 | |
Finished Goods Inventory | 1,350 | |
Total Current Assets | $5,650 | |
Property, Plant, and Equipment: | ||
Equipment | 16,000 | |
Less: |
(1,500) | 14,500 |
Total Assets | $20,150 | |
Liabilities | ||
Current Liabilities: | ||
Accounts Payable | $1,000 | |
Common Stock, no par | $6,500 | |
12,650 | ||
Total Stockholders’ Equity | 19,150 | |
Total Liabilities and Stockholders’ Equity | $20,150 |
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
Depreciation on manufacturing equipment, $800
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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Chapter 22 Solutions
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText - Access Card Package (12th Edition)
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- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College