Exercise 20-26A Mercha dising: Preparing a budgeted income statement and balance sheet LO P4 Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000 b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), S1,720,000, June (actual), $1,200,000; and July (budgeted) $1,400,000 c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual). $700,000; and July (budgeted). $750,000 d. Budgeted cash payments for salaries in July: $275,000 e. Budgeted depreciation expense for July $36,000. . Other cash expenses budgeted for July, $200,000 9. Accrued income taxes due in July: $80,000 h. Bank loan interest paid in July: $6,600. Additional Information: a. Cost of goods sold is 55% of sales. b. Inventory at the end of June is $80,000 and at the end of July is $60,000 C. Salores payable on June 30 are $50,000 and are expected to be $60,000 on July 31 d. The equipment account balance is $1,600,000 on July 31 on June 30, the accumulated depreciation on equipment is $280,000, e. The $6,500 cash payment of interest represents the 1% monthly expert on a bank loan of $660,000 f. Income taxes payable on July 31 are $30.720, and the income tax rate is 30% 9. The only other balance sheet accounts are common Stock with a bolonce of $600,000 on June 30, and retained Earnings, with a balance of $964,000 on June 30 Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31 Complete this question by er vering your answers in the tabs below. Calculation Inc Stmt Bal Sheet Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts From Sales Collected in Total Sales May June July 31 July Accounts Ret Credit sales from: May June 1,720,000 1,200,000 1,400,000 4,320,000 $ July Totals 0 $ 0$ 0 $ 0 Calculation of Cash Payments for Merchandise -Paid in July 31 Total Purchases June July Accounts Pay Purchases from June S July Totals 700,000 750,000 1.450,000 $ 0 $ 0 $ Parc Guys LG TV uy Growuuys VOITTO Budgeted Income Statement For onth Ended July 31 Operating expenses: 0 Total operating expenses 0 $ 0 ACCO CO. Budgeted Balance Sheet As of July 31 Assets 0 ACCS CO. Budgeted Balance Sheet of July 31 Assets 0 Liabilities and Equity Liabilities Starthidare si 0 Liabilities and Equity Liabilities Stockholders' Equity