ch. 22 Budget Income Statement & Balance Sheet

ugeted Income Statement and Balance Sheet s a preliminary to requesting budget estimates of sales, costs, and expenses for the facal year begining January 1, 20ve, the following tentative tial belance as of December 31, 2017, s prepared by the Accouneng epartment of Mesa Publishing Co. Cash Accoures Receivable Finished Goods 26,000 23,800 16,900 4,200 6,400 600 82,000 Materials Prepaid Expenses Plant and Equipment Accumulated Depreciation-Plant and Equipment Accounts Payable Common Stock, $1.50 par Retained Earnings 32,000 4,800 0,000 83,100 159,900 $159,900 Factory outp and sales for 20YB are expected to total 3,B00 unts or product, which from the balances at the begnning of the year to be sold at S 120 The Oaremes and easts or the invenones at December 31, 2gva, an "pected to-man mong Budget estimates of manufacturing cists and operating expenses for the year aro mmarned BS " Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not will be paid during 20YB. Reguar quarterty cash dividends of s0.20 per share a anticipated that fixed assets will be purchased for $22,000 cash in May tax of $35,000 on 20Y8 taxable incem 20Y8 expected to are expected to be declared and paid in March, ue, Sephember, and December on 20,000 shares of c common stock outstanding. It is 1. Prepare a budgeted income statement for 20YB Mesa Publishing Co. Budgeted Income Statement For the Year Ending December 31, 2ers Cost of goods sold Ceet of goods sole Groas profe Operating expenses Seling expenses Mesa Publishing Co. Budgeted Balance Sheet December 31, 20Y8 Assets Current assets: Cash v 122,660x Accounts receivable 23,800 V Inventories: Finished goods Work in process Y Materials v Prepaid expenses v Total current assets S 16,900 4,200 6,400 600 174,560 X Property, plant, and equipment: Plant and equipment v Less accumulated depreciation Total assets Liabilities