Explanation Budgeted income statement: This budget is prepared by the organization for the yearly, quarterly, or monthly basis as per need to find estimated income after income tax. It includes all the estimated income and expenses from the entire operating source, including income tax. Budgeted income statement for the month of May and June: Income statement (Amount in $) Particulars Month May June Sells: May: ( 50 , 000 + 50 , 000 × 8 % ) June: ( 50 , 000 + 50 , 000 × 12 % ) 54,000 56,000 Less: Cost of sell (see working note) 26,600 30,200 Gross profit 27,400 25,800 Less: Operating expenses Salary and commission: May: ( 3000 + 54 , 000 × 5 % ) June: ( 3000 + 56 , 000 × 5 % ) 5,700 5,800 Rent 3,200 3,200 Insurance 300 300 Total expense 9,200 9,300 Total income 18,200 16,500 Less: Income tax 3,640 3,300 Income after tax 14,560 13,200 Table (1) Given: 1. Sales in April were $50,000

5th Edition

ISBN: 9780134067254

Author: Braun

Publisher: PEARSON

See similar textbooks

Concept explainers

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…

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…

Videos

Question

Chapter 9, Problem 9.60AP

To determine

The budgeted income statement for the month of May and June.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 9, Problem 9.59AP

Chapter 9, Problem 9.61AP

Students have asked these similar questions

General accounting question

Ten years ago, a corporation created a new brand name that is now considered to be its most valuable asset. On which financial statement and at what amount will you see the brand name reported? Balance Sheet At Its Present Value Statement Of Comprehensive Income With No Value Not Reported On A Financial Statement

need answer of this question for financial accounting

Chapter 9 Solutions

Managerial Accounting (5th Edition)

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education

FINANCIAL ACCOUNTING

Accounting

ISBN:9781259964947

Author:Libby

Publisher:MCG

Accounting

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:Cengage Learning,

Accounting Information Systems

Accounting

ISBN:9781337619202

Author:Hall, James A.

Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...

Accounting

ISBN:9780134475585

Author:Srikant M. Datar, Madhav V. Rajan

Publisher:PEARSON

Intermediate Accounting

Accounting

ISBN:9781259722660

Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:9781259726705

Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:McGraw-Hill Education

SEE MORE TEXTBOOKS

Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY

The budgeted income statement for the month of May and June.

Solution Summary: The author explains the budgeted income statement for May and June. It includes all the estimated income and expenses from the entire operating source, including income tax.

Concept explainers

Videos

The budgeted income statement for the month of May and June.

Want to see the full answer?

Chapter 9 Solutions