Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Y the following tentative trial balance as of December Y is prepared by the Accounting Department of Regina Soap Co:
Account Title Debit Balance Credit Balance
Cash $
Accounts Receivable
Finished Goods
Work in Process
Materials
Prepaid Expenses
Plant and Equipment
Accumulated DepreciationPlant and Equipment $
Accounts Payable
Common Stock, $ par
Retained Earnings
Total $ $
Factory output and sales for Y are expected to total units of product, which are to be sold at $ per unit. The quantities and costs of the inventories at December Y 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:
Estimated Costs and Expenses
Line Item Description Fixed
Total for Year Variable
Per Unit Sold
Cost of goods manufactured and sold:
Direct materials $
Direct labor
Factory overhead:
Depreciation of plant and equipment $
Other factory overhead
Selling expenses:
Sales salaries and commissions
Advertising
Miscellaneous selling expense
Administrative expenses:
Office and officers salaries
Supplies
Miscellaneous administrative expense
Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $ on Y taxable income will be paid during Y Regular quarterly cash dividends of $ per share are expected to be declared and paid in March, June, September, and December on shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $ cash in May.
Required:
Question Content Area
Prepare a budgeted income statement for Y
Regina Soap Co
Budgeted Income Statement
For the Year Ending December Y
Line Item Description Amount Amount Amount
$ Select
Cost of goods sold:
$ Select
Select
Select
Cost of goods sold Cost of goods sold
Gross profit $Gross profit
Operating expenses:
Selling expenses:
$ Select
Select
Select
Total selling expenses $Total selling expenses
Administrative expenses:
$ Select
Select
Select
Total administrative expenses Total administrative expenses
Total operating expenses Total operating expenses
Income before income tax $Income before income tax
Select
$ Select
Question Content Area
Prepare a budgeted balance sheet as of December Y
Regina Soap Co
Budgeted Balance Sheet
December Y
Line Item Description Amount Amount Amount
Assets
Current assets:
fill in the blank of
fill in the blank of $
fill in the blank of
fill in the blank of
Inventories:
fill in the blank of
fill in the blank of $
fill in the blank of
fill in the blank of
fill in the blank of
fill in the blank of
Total fill in the blank of
fill in the blank of
fill in the blank of
Total current assets fill in the blank of $
Property, plant, and equipment:
fill in the blank of
fill in the blank of $
fill in the blank of
fill in the blank of
Total property, plant, and equipment fill in the blank of
Total assets fill in the blank of $
Liabilities
Current liabilities:
fill in the blank of
fill in the blank of $
Stockholders' Equity
fill in the blank of
fill in the blank of $
fill in the blank of
fill in the blank of
Total stockholders equity fill in the blank of
Total liabilities and stockholders equity fill in the blank of $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
