december 31 2024

the first quarter of 2025

additional information

Haney Company Post-Closing Trial Balance December 31, 2024 Account Debit Credit Cash $ 35.000 Accounts Receivable 20,000 Raw Materials Inventory 13,000 Finished Goods Inventory 25,200 Equipment 120,000 $ Accumulated Depreciation 70,000 16.500 Accounts Payable Cash $ 35.000 Accounts Receivable 20,000 Raw Materials Inventory 13,000 Finished Goods Inventory 25.200 Equipment 120.000 $ Accumulated Depreciation 70.000 Accounts Payable 16,500 Common Stock 110,000 16,700 Retained Earnings $ 213,200 $ 213,200 Totals $ 309,000 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost 36,000 12.000 Budgeted manufacturing overhead costs: Variable manufacturing overhead 2.900 Depreciation 1,400 Insurance and property taxes 1,020 Budgeted cost of goods sold Budgeted selling and administrative expenses: 71,400 Salaries expense 13,000 Rent expense 3,000 Data table 1,020 Insurance and property taxes Budgeted cost of goods sold Budgeted selling and administrative expenses: 71,400 Salaries expense 13,000 Rent expense 3.000 M Insurance expense 1,500 200 6,180 Depreciation expense Supplies expense Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) 264,000 50,000 35,000 Additional information: Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter. b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. Accounts payable at December 31, 2024 are paid in the first quarter of 2025. C. Requirement 1. Prepare Haney Company's budgeted income statement for the first quarter of 2025. Haney Company Budgeted Income Statement For the Quarter Ended March 31, 2025 Sales Revenue $ 309,000 Cost of Goods Sold 71,400 Gross Profit 237,600 23,880 Selling and Administrative Expenses Income before Income Taxes 213,720 Income Tax Expense 50,000 Net Income 163,720 Requirement 2. Prepare Haney Company's budgeted balance sheet as of March 31, 2025. Haney Company Budgeted Balance Sheet March 31, 2025 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory 13,000 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity $ 110,000 Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity