Ballentine Company has the following post-closing trial balance on December 31, 2018:
BALLENTINE COMPANY
Post-Closing Trial Balance
December 31, 2018

The company's accounting department has gathered the following budgeting information for the first quarter of 2019:
Budgeted total sales, all on account ......................................... $ 305,500
Budgeted direct materials to be purchased and used ......................... 40,000
Budgeted direct labor cost ........................................................ 12,500
Budgeted manufacturing overhead costs:
Variable manufacturing overhead ............................................... 2,600
Depreciation .......................................................................... 800
Insurance and property taxes ..................................................... 1,100
Budgeted cost of goods sold .................................................. 71,300
Budgeted selling and administrative expenses:
Salaries expense ................................................................. 7,000
Rent expense ..................................................................... 3,500
Insurance expense ............................................................... 2,000
Depreciation expense ............................................................. 350
Supplies expense ................................................................ 3,055
Budgeted cash receipts from customers ................................. 263,500
Budgeted income tax expense ............................................. 44,000
Budgeted purchase and payment for capital expenditures
(additional equipment) ....................................................... 34,000
Additional information:
a. Direct materials purchases are paid 50% in the quarter purchased and 50% in the next quarter.
b. Direct labor, ma following budgeted income statement manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred.
c. Accounts payable at December 31, 2018 are paid in the first quarter of 2019.
Requirements
1. Prepare Ballentine Company's budgeted income statement for the first quarter of 2019.
2. Prepare Ballentine Company's budgeted balance sheet as of March 31, 2019?

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Account Debit Credit $ 45,000 Cash Accounts Receivable 17,900 Raw Materials Inventory 7,000 Finished Goods Inventory 25,900 Equipment 120,000 $ 20,000 Accumulated Depreciation Accounts Payable 17,300 Common Stock 85,000 Retained Earnings 93,500 $ 215,800 $ 215,800 Totals