Chapter 22 Homework Book Printiem 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, 2049, the following tentative trial balance as of December 31, 2018, is prepared by the Accounting Department of Regina Soap Co. Cash $104,900 Accounts Receivable 200,400 Finished Goods 42,100 Work in Process 28,100 Materials 46,100 Prepaid Expenses 3,400 Plant and Equipment 535,000 Accumulated Depreciation--Plant and Equipment $230,100 Accounts Payable 167,700 Common Stock, $10 par 300,000 Retained Earnings 262,200 $960,000 $960,000 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, 2079, 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 Fived Variable Chapter 22 Homework Book Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold Direct materials $25 Direct labor 8 Factory overhead: Depreciation of plant and equipment $26,000 Other factory overhead 8,100 4.5 Selling expenses Sales salaries and commissions 93,300 12.5 Advertising 78,000 Miscellaneous selling expense 6,800 2 Administrative expenses Office and officers salaries 61,400 6.5 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 $220,700 on 2079 taxable income will be paid during 2079. 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 feed assets will be purchased for $144,000 cath in May. eBook Print Item Chapter 22 Homework Required: 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2019 Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expenses: Total selling expenses Administrative expenses: th hapter 22 Homework eBook Print Item 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, 2019 Assets Current assets: Inventories: Regina Soap Co. Budgeted Balance Sheet December 31, 2019 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Ilahillelae apter 22 Homework eBook Print Item 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