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Budgeted Income Statement and Balance Sheet

As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January $1,20$Y$9,$ the following tentative trial balance as of December $31,20$Y$8,$ is prepared by the Accounting Department of Regina Soap Co$.$:

Cash $$119,800$

Accounts Receivable $231,200$

Finished Goods $48,600$

Work in Process $32,400$

Materials $53,200$

Prepaid Expenses $3,900$

Plant and Equipment $561,900$

Accumulated Depreciation$$Plant and Equipment $$241,600$

Accounts Payable $198,700$

Common Stock, $$10$ par $300,000$

Retained Earnings $310,700$

$$1,051,000$ $$1,051,000$

Factory output and sales for $20$Y$9$ are expected to total $28,000$ units of product, which are to be sold at $$120$ per unit. The quantities and costs of the inventories at December $31,20$Y$9,$ 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 $\_$ $$30$

Direct labor $\_9\mathrm{.}5$

Factory overhead:

Depreciation of plant and equipment $$28,000\_$

Other factory overhead $8,7005\mathrm{.}5$

Selling expenses:

Sales salaries and commissions $100,50015$

Advertising $84,000\_$

Miscellaneous selling expense $7,3002\mathrm{.}5$

Administrative expenses:

Office and officers salaries $66,1007\mathrm{.}5$

Supplies $3,4001$

Miscellaneous administrative expense $1,8002$

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 $$304,900$ on $20$Y$9$ taxable income will be paid during $20$Y$9.$ Regular quarterly cash dividends of $$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 $$152,000$ cash in May.

Required:

Question Content Area

$1.$ Prepare a budgeted income statement for $20$Y$9.$

Regina Soap Co$.$

Budgeted Income Statement

For the Year Ending December $31,20$Y$9$

$$-$ Select $-$

Cost of goods sold:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Cost of goods sold fill in the blank $9$e$591200$ffcd$071\_9$

Gross profit $fill in the blank $9$e$591200$ffcd$071\_10$

Operating expenses:

Selling expenses:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total selling expenses $fill in the blank $9$e$591200$ffcd$071\_17$

Administrative expenses:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total administrative expenses fill in the blank $9$e$591200$ffcd$071\_24$

Total operating expenses fill in the blank $9$e$591200$ffcd$071\_25$

Income before income tax $fill in the blank $9$e$591200$ffcd$071\_26$

$-$ Select $-$

$$-$ Select $-$

Question Content Area

$2.$ Prepare a budgeted balance sheet as of December $31,20$Y$9.$

Regina Soap Co$.$

Budgeted Balance Sheet

December $31,20$Y$9$

Assets

Current assets:

$fill in the blank $34799$d$09$cfad$07$c$\_2$

fill in the blank $34799$d$09$cfad$07$c$\_4$

Inventories:

$fill in the blank $34799$d$09$cfad$07$c$\_6$

fill in the blank $34799$d$09$cfad$07$c$\_8$

fill in the blank $34799$d$09$cfad$07$c$\_10$

fill in the blank $34799$d$09$cfad$07$c$\_11$

fill in the blank $34799$d$09$cfad$07$c$\_13$

Total current assets $fill in the blank $34799$d$09$cfad$07$c$\_14$

Property, plant, and equipment:

$fill in the blank $34799$d$09$cfad$07$c$\_16$

fill in the blank $34799$d$09$cfad$07$c$\_18$

Total property, plant, and equipment fill in the blank $34799$d$09$cfad$07$c$\_19$

Total assets $fill in the blank $34799$d$09$cfad$07$c$\_20$

Liabilities

Current liabilities:

$fill in the blank $34799$d$09$cfad$07$c$\_22$

Stockholders' Equity

$fill in the blank $34799$d$09$cfad$07$c$\_24$

fill in the blank $34799$d$09$cfad$07$c$\_26$

Total stockholders$$ equity fill in the blank $34799$d$09$cfad$07$c$\_27$

Total liabilities and stockholders$$ equity $fill in the blank $34799$d$09$cfad$07$c$\_28$