Homework Chapter 7 Saved Help Save & Exit Submit Check my work 3 Exercise 7-26A Merchandising: Preparing a budgeted income statement and balance sheet LO P4 Following information relates to Acco Co. points a. Beginning cash balance on July 1: $30,000 b. Cash receipts from sales: 21% is collected in the month of sale, 50% in the next month, and 29% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,032,000; June (actual), $720,000; eBook and July (budgeted), $840,000. C. Payments on merchandise purchases: 42% in the month of purchase and 58% in the month following purchase. Purchases amounts are: June (actual), $258,000; and July (budgeted), $600,000. d. Budgeted cash payments for salaries in July: $126,600 e. Budgeted depreciation expense for July: $7,200. f. Other cash expenses budgeted for July: $90,000. g. Accrued income taxes due in July: $80,000 h. Bank loan interest paid in July: $3,960. Hint Print Additional Information: References a. Cost of goods sold is 31% of sales b. Inventory at the end of June is $48,000 and at the end of July is $387,600. c. Salaries payable on June 30 are $30,000 and are expected to be $24,000 on July 31 d. The equipment account balance is $960,000 on July 31. On June 30, the accumulated depreciation on equipment is $168,000. e. The $3,960 cash payment of interest represents the 1% monthly expense on a bank loan of $396,000. f. Income taxes payable on July 31 are $125,244, and the income tax rate is 35%. g. The only other balance sheet accounts are: Common Stock, with a balance of $439,240 on June 30; and Retained Earnings, with a balance of $643,200 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 entering your answers in the tabs below 3 Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31 ACCO Co Budgeted Income Statement For Month Ended July 31 points Accounts payable Operating expenses: Hint Total operating expenses References ACCO CO. Budgeted Balance Sheet As of July 31 Assets Check my work 3 ACCO Budgeted Balance Sheet As of July 31 Assets 7 points eBook Hint Liabilities and Equity Print Liabilities References Stockholders' Equity K Calculation