Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah, the sole stockholder of Barnie Inc., runs a home-cleaning service in the suburb of a large city. Her balance sheet as at October 31,

Sarah, the sole stockholder of Barnie Inc., runs a home-cleaning service in the suburb of a large city. Her balance sheet as at October 31, 2019 is as follows:

Barnie Inc. Balance Sheet As at October 31, 2019
Assets
Cash $4,800
Accounts Receivable $19,500
Equipment $8,400
Accumulated Depreciation $-1,100
Total Assets $31,600
Liabilities
Accounts Payable $3,600
Notes Payable $13,500
Total Liabilities $17,100
Stockholder's Equity $14,500
Total Liabilities & Stockholder's Equity $31,600

In the upcoming year, Sarah expects the following events to occur:

  • Total revenues of $22,000 and total expenses of $14,590
  • 100% of accounts receivable from the prior year will be collected in the following year
  • Credit sales will represent 50% of revenues for the year
  • 100% of accounts payable owing from 2019 will be paid off in 2020
  • By the end of October, 2020, Barnie will owe its suppliers $3,900
  • No principal payments will be made on the bank loan during 2019
  • Purchase of new equipment for $1,900. The entire purchase will be financed through a bank loan
  • Expect to have a cash balance of $21,700 at the end of fiscal 2020
  • Depreciate assets by $690 during 2020

Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values. Prepare Barnie Inc.'s budgeted balance sheet as at October 31, 2020.

Barnie Inc. Budgeted Balance Sheet As at October 31, 2020
Assets
Cash $Answer
Accounts Receivable $Answer
Equipment $Answer
Accumulated Depreciation $Answer
Total Assets $Answer
Liabilities
Accounts Payable $Answer
Notes Payable $Answer
Total Liabilities $Answer
Stockholder's Equity $Answer
Total Liabilities & Stockholder's Equity $Answer

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

Artificial Intelligence In Accounting Organisational And Ethical Implications

Authors: Othmar M. Lehner, Carina Knoll

1st Edition

1032055626, 9781032055626

More Books

Students also viewed these Accounting questions

Question

2. Establish eye-level position.

Answered: 1 week ago

Question

=+For a different audience? In another tone of voice?

Answered: 1 week ago

Question

=+Can it illicit audience participation?

Answered: 1 week ago

Question

=+Create an open dialogue among users?

Answered: 1 week ago