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, 20Y4, the following tentative trial balance as of December 31, 20Y3, is prepared by the Accounting Department of Regina Soap Co.:
Cash | $112,700 | | |
Accounts Receivable | 193,800 | | |
Finished Goods | 40,700 | | |
Work in Process | 27,100 | | |
Materials | 44,600 | | |
Prepaid Expenses | 3,300 | | |
Plant and Equipment | 535,300 | | |
Accumulated DepreciationPlant and Equipment | | | $230,200 |
Accounts Payable | | | 166,600 |
Common Stock, $10 par | | | 300,000 |
Retained Earnings | | | 260,700 |
| $957,500 | | $957,500 |
Factory output and sales for 20Y4 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, 20Y4, 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 |
| Fixed (Total for Year) | Variable (Per Unit Sold) |
Cost of goods manufactured and sold: |
Direct materials | _ | | $28 | |
Direct labor | _ | | 8.5 | |
Factory overhead: | | |
Depreciation of plant and equipment | $26,000 | | _ | |
Other factory overhead | 8,100 | | 5 | |
Selling expenses: | | |
Sales salaries and commissions | 93,300 | | 14 | |
Advertising | 78,000 | | _ | |
Miscellaneous selling expense | 6,800 | | 2 | |
Administrative expenses: | | |
Office and officers salaries | 61,400 | | 7 | |
Supplies | 3,100 | | 1 | |
Miscellaneous administrative expense | 1,600 | | 1.5 | |
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 $251,900 on 20Y4 taxable income will be paid during 20Y4. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 30,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $145,000 cash in May.
Required:
Question Content Area
1. Prepare a budgeted income statement for 20Y4.
Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 20Y4 |
| | | $- Select - |
Cost of goods sold: | | | |
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| | - Select - | |
Cost of goods sold | | | fill in the blank 4ec160fbbfe306d_9 |
Gross profit | | | $fill in the blank 4ec160fbbfe306d_10 |
Operating expenses: | | | |
Selling expenses: | | | |
|
| - Select - | | |
Total selling expenses | | $fill in the blank 4ec160fbbfe306d_17 | |
Administrative expenses: | | | |
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| - Select - | | |
Total administrative expenses | | fill in the blank 4ec160fbbfe306d_24 | |
Total operating expenses | | | fill in the blank 4ec160fbbfe306d_25 |
Income before income tax | | | $fill in the blank 4ec160fbbfe306d_26 |
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Question Content Area
2. Prepare a budgeted balance sheet as of December 31, 20Y4.
Regina Soap Co. Budgeted Balance Sheet December 31, 20Y4 |
Assets |
Current assets: | | | |
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| | $fill in the blank bdb63701a01403f_2 | |
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| | fill in the blank bdb63701a01403f_4 | |
Inventories: | | | |
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| $fill in the blank bdb63701a01403f_6 | | |
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| fill in the blank bdb63701a01403f_8 | | |
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| fill in the blank bdb63701a01403f_10 | fill in the blank bdb63701a01403f_11 | |
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| | fill in the blank bdb63701a01403f_13 | |
Total current assets | | | fill in the blank bdb63701a01403f_14 |
Property, plant, and equipment: | | | |
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| | $fill in the blank bdb63701a01403f_16 | |
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| | fill in the blank bdb63701a01403f_18 | fill in the blank bdb63701a01403f_19 |
Total assets | | | $fill in the blank bdb63701a01403f_20 |
Liabilities |
Current liabilities: | | | |
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| | | $fill in the blank bdb63701a01403f_22 |
Stockholders' Equity |
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| | $fill in the blank bdb63701a01403f_24 | |
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| | fill in the blank bdb63701a01403f_26 | |
Total stockholders equity | | | fill in the blank bdb63701a01403f_27 |
Total liabilities and stockholders equity | | | $fill in the blank bdb63701a01403f_28 |
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