Create a balance budget sheet for quarter ending in March 31st, 2018

These journal entries should be used

Babalu Musical Instrument Co
Budgeted Balance Sheet
For the Quarter Ending March 31, 2017
Current assets
Cash
Accounts receivable
Finished goods inventory
Raw material inventory
Total current assets
Property, plant, and equipment
Buildings and equipment
Less: Accumulated depreciation
Total assets

BABALU MUSICAL INSTRUMENT COMPANY Estimated Balance Sheet er 31, 201 Assets Liabilities and Equity Cash $37,000 Accounts payable S365,000 Accounts receivable 520,000 Bank loan payable 15,000 Taxes payabl Inventory 35,000 92,000 (due 3/15/2018) Total current assets 692,000 Total liabilities $472,000 Equipment $543,000 n stock 471,000 Less 67,8750 224,125 475,125 Retained earnings accumulated depreciatiom Total stockholders' equity 695,125 si,167,125 Total liabilities and equity si 167,125 Total assets To prepare a master budget for January, February, and March of 2018, management gathers the following information. Babalu Musical's si gle prod uct is purchased for $30 per unit and resold for S57 per unit. The expected inventory management's desired level for 2018, level of 4.500 uni ts on December 31, 2017, is more than which is 20% of the next month's expected sales (in units). Expected sales are: January, 7,500 units; February, 9,500 units; March, l 1,500 units; and April, 9,500 units b. Cash sales and credit sales represent 30% and 70% respectively, oftotal sales. Ofthe credit sales, 70% is collected in the first month after the month of sale and 30% in th e second month after the month of sale. For the December 31, 2017, accounts receivable balance $125,000 is collected in January and the remaining S395,000 is collected in February. e. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second mon h after the month of purchase. For the December 31, 2017, accounts payable balance, S80,000 is paid in January and the remaining S285,000 is paid in February. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are S84,000 per year. e. General and administrative salaries are 44,000 per year. Maintenance expense equals S2,200 per month and is paid in cash. f Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, S34,000; February, $96,000, and March, $28,500. This equipment will be depreciated under the straight. ne method over eight years with no salvage value full month's depreciation is taken for the month in which equipment is purchased g. The company plans to acquire land at the end of March at a cost of si45,000, which wi be paid with cash on the ast day of the month. h. Babalu Musical has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments these loans can be made on the last day of the month. The company has agreed to maintain a min mum ending cash balance of S54,400 in each month. i. The income tax rate for the company is 30%. Income taxes on the first quarter's income wil not be paid April 15