The Pottery Store has applied for a loan. First Central Bank has requested a budgeted balance sheet at June 30, 2009, and a budgeted statement of cash flows for June. As the controller (chief accounting officer) of The Pottery Store, you have assembled the following information:

May 31 balance sheet information: Cash, \$50,200; Accounts Receivable, \(\$ 15,300\); Inventory balance, \(\$ 11,900\); Equipment, \$80,800; Accumulated Depreciation, \$12,400; Accounts Payable, \$8,300; Accrued Liabilities, \$0; Owners' Equity, \(\$ 137,500\)

Planned June operating activity information:

a. Purchase inventory costing \(\$ 48,200\), paying \(\$ 20,000\) in cash and \(\$ 28,200\) on credit

b. Sales, \(\$ 85,000,40 \%\) of which is for cash. The remaining \(60 \%\) is credit sales.

c. Cost of goods sold, \(50 \%\) of sales

d. June depreciation expense, \(\$ 400\)

e. Other June operating expenses, including income tax, total \(\$ 34,000,75 \%\) of which will be paid in cash and the remainder accrued at June 30 

Planned June cash information:

a. Collect \(\$ 40,800\) from customers on account

b. Pay \(\$ 26,900\) to creditors and suppliers on account

c. Pay cash for equipment costing \(\$ 16,400\)

Requirements 

1. Use the accounting equation on page 11 to prepare a worksheet with columns for each asset, liability, and owner's equity item. Enter the May 31 balance sheet information in the first row. Record the information above into the worksheet. Calculate the June 30 balances by adding the numbers in each column.

2. Prepare the cash budget for June.

3. Prepare the budgeted balance sheet for The Pottery Store at June 30, 2009.