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Problem 7-5A Merchandising: Preparation of a complete master budget LO C2, P1, P2 [The following information applies to the questions displayed below.] Near the end
Problem 7-5A Merchandising: Preparation of a complete master budget LO C2, P1, P2
[The following information applies to the questions displayed below.]
| Near the end of 2013, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2013. |
| DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2013 | |||||
| Assets | |||||
| Cash | $ | 36,000 | |||
| Accounts receivable | 525,000 | ||||
| Inventory | 150,000 | ||||
| Total current assets | 711,000 | ||||
| Equipment | $ | 540,000 | |||
| Less accumulated depreciation | 67,500 | ||||
| Equipment, net | 472,500 | ||||
| Total assets | $ | 1,183,500 | |||
| Liabilities and Equity | |||||
| Accounts payable | $ | 360,000 | |||
| Bank loan payable | 15,000 | ||||
| Taxes payable (due 3/15/2014) | 90,000 | ||||
| Total liabilities | $ | 465,000 | |||
| Common stock | 472,500 | ||||
| Retained earnings | 246,000 | ||||
| Total stockholders | |||||
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