Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2019, the following tentative trial balance as of December 31, 2018, is prepared by the Accounting Department of Regina Soap Co.: Accounts Receivable Finished Goods Work in Process Materials Prepaid Expenses $108,000 204,100 42,900 28,600 46,900 3,500 537,800 Plant and Equipment Accumulated Depreciation-Plant and Equipment Accounts Payable $23100 152,300 350,000 238,200 Common stock, $10 par Retained Earnings $971,800 $971,800 Factory output and sales for 2019 are expected to total 26,000 units of product, which are to be sold at $100 per unit. The quantities and costs of the inventories at December 31, 2019, are expected to remain unchanged from the balances at the beginning of the year Budget estimates of manufacturing costs and operating expenses for the year are summarired as follows: Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials Direct labor Factory overhead: Depreciation of plant and equipment $26,000 Other factory overhead 8,100 Selling expenses: Sales salaries and commissions 93,300 Advertising 78,000 Miscellaneous selling expense Administrative expenses: Omice and officers salaries 61,400 Supplies Miscellaneous administrative expense Balances of accounts receivate, prepaid expenses, and accounts payable at the end of the year are 6,000 3.100 1,600 expected to differ incantly from the beginning balances Federal income tax of $220,700 on ve taxable Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to offer significantly from the beginning balances Federal income tax of $220,700 on 2019 tacable income will be paid during 207. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, Lune, September and December on 35.000 shares of common stock outstanding. It is anticipated that foxed assets will be purchased for $145,000 cash in May. Required: 1. Prepare a budgeted income statement for 2019. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2019 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross proft Operating expenses Selling expenses Sales salaries and commissions Advertising cellaneous selling expense Total selling expenses Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries 10 Supplies Miscellaneous administrative expense Total administrative expenses Total operating expenses Income before income tax Income tax expense Net income Regina Soap Co. Budgeted Balance Sheet December 31, 2049 Assets Current assets: Cash Accounts recelvable Inventories: Finished goods Work in process Materials Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Accumulated depreciation Total property, plant, and equipment Total assets ngayu homework Chapter 22 eBook Calculator Total assets Liabilities Current liabilities: Accounts payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity
