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,
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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:
| Cash | $107,200 | | |
| Accounts Receivable | 199,400 | | |
| Finished Goods | 41,900 | | |
| Work in Process | 27,900 | | |
| Materials | 45,900 | | |
| Prepaid Expenses | 3,400 | | |
| Plant and Equipment | 537,100 | | |
| Accumulated DepreciationPlant and Equipment | | | $231,000 |
| Accounts Payable | | | 168,400 |
| Common Stock, $10 par | | | 300,000 |
| Retained Earnings | | | 263,400 |
| | $962,800 | | $962,800 |
Factory output and sales for 20Y9 are expected to total 26,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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 summarized as follows:
Budgeted Income Statement and Balance Shoot Axpiredirey to rent but stirrwts of sales, all expers for the final year beginning muary 1, 2049, the following tentative treas of Der 31, 2048, in prepared by the Aswanting Department of Region Soup : Cash $107 200 Accounts Receivable 199,400 Finished Goods 41.900 Work in Process 27,900 Materials 45,900 Prepaid Expenses 3,400 Plant and Equipment 537,100 Armulatelepruun-antara $231,000 trument Accounts Payable 169,100 Common Stock, s10 per 300.000 Rocained Eaming 263,400 $962,000 $962,800 Factory output and sales for 2049 are aspected to total 25,000 units of product, which are to be sold at $110 per unit. The quantities and costs a theirwanteries at December 31, 209, are expected ta remain unchanged from the arces at the beginning of the year. Buget lof enlacturing and operating expers for the year are uniforms: Estimated costs and Expenses Fixed Variable (Total for (Per Unit Year) Sold) Cost of goods marcactured and sold: Direct materials $28 Direct labor 8.5 Factory bival: Depreciation of plant and equipment $26,000 Other factory overticad 8,100 5 5 Sailing expenses: Sales Nunc 93,300 Advertising 70,000 Misce lanccus seling exc 6,800 2 Administrative expenses Office and for salarii 7 Supplies 3,100 1 Miscelarecus acmhistrative expense 1,500 1.5 Estances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginnng balances. Federal Income tax of $25.900 on 2049 taxable income wil be paid during 2DYS. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, Jure, September, and December on 30,000 shares of common stock outstanding. It is anticipated that we assets will be purchased to- $145,000 cash in May. 14 51,430 Required: 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2049 Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expenses: $ $ $ Total selling expenses Administrative expenses: $ Total administrative expenses Total operating expenses Income before income tax $ 2. Prepare a budgeted balance sheet as of December 31, 2019. Regina Soap Co. Budgeted Balance Sheet December 31, 2049 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity
