Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please make it all in a table form as given in other questions on chegg. Notebook Office Supply Balance Sheet March 31, 2016 Assets Current

Please make it all in a table form as given in other questions on chegg.

image text in transcribedimage text in transcribedimage text in transcribed

Notebook Office Supply

Balance Sheet

March 31, 2016

Assets

Current Assets:

Cash

$28,000

Accounts Receivable

32,000

Merchandise Inventory

22,500

Prepaid Insurance

1,300

Total Current Assets

$83,800

Property, Plant, and Equipment:

Equipment and Fixtures

34,000

Less: Accumulated Depreciation

(24,000)

10,000

Total Assets

$93,800

Liabilities

Current Liabilities:

Accounts Payable

$10,000

Salaries and Commissions Payable

8,400

Total Liabilities

$18,400

Stockholders' Equity

Common Stock, no par

23,000

Retained Earnings

52,400

Total Stockholders' Equity

75,400

Total Liabilities and Stockholders' Equity

$93,800

Notebook Office Supply's March 31,2016 , balance sheet follows: (Click the icon to view the balance sheet.) The budget committee of Notebook Office Supply has assembled the following data: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare Notebook's sales budget for April and May 2016. Round all amounts to the nearest dollar. More info a. Sales in April are expected to be $100,000. Notebook forecasts that monthly sales will increase 2% over April sales in May. June's sales will increase by 4% over April sales. July sales will increase 20% over April sales. Cash receipts are 60% in the month of the sale and 40% in the month following the sale. b. Notebook maintains inventory of $10,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. Purchases are paid 70% in the month of purchase and 30% in the month following the purchase. c. Monthly salaries amount to $10,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 40% in the month incurred and 60% in the following month. d. Other monthly expenses are as follows: - Rent: $2,200, paid as incurred - Depreciation: $800 - Insurance: $100, expiration of prepaid amount - Income tax: $1,800, paid as incurred Requirements 1. Prepare Notebook's sales budget for April and May 2016. Round all amounts to the nearest dollar. 2. Prepare Notebook's inventory, purchases, and cost of goods sold budget for April and May. 3. Prepare Notebook's selling and administrative expense budget for April and May

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions