Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3: Maj Co, has provided balance sheet information for the year just ended, December 31, 2018: Cash Accounts receivable Building Accumulated depreciation Total assets

image text in transcribed
Question 3: Maj Co, has provided balance sheet information for the year just ended, December 31, 2018: Cash Accounts receivable Building Accumulated depreciation Total assets Accounts payable Long-Term Loan Total liabilities Shareholders' Equity Total Liabilities & Shareholders' Equity $40,000 50,000 100,000 (40,000) $150,000 $30,000 70,000 100,000 50,000 $150,000 The company has also provided the following information and estimates for 2019: Revenue is expected to be $200,000 and net income is expected to be $40,000. The company will pay $30,000 of cash dividends in the upcoming year. Accounts receivable from the previous year will all be collected in the current year. 35% of revenue will remain uncollected at the end of the year. 100% of accounts payable owing at December 31, 2018 will be paid in the current year. The company will owe $15,000 to suppliers at December 31, 2018. The company will make the required principal payment of 10,000 on the bank loan during the year. The company expects to have a cash balance of $30,000 at the end of 2019. Yearly depreciation expense of the building is $15,000. Required: Prepare a budgeted balance sheet for the year ended December 31, 2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

3rd Edition

047169195X, 978-0471691952

More Books

Students also viewed these Accounting questions

Question

2. What are the prospects for these occupations?pg 87

Answered: 1 week ago