This is a two-part question, it is a budgeted income statement and a budgeted balance sheet using the same numbers.

Part 2

The ending year balance of Retained earnings was $78,000 on December 31. Prepare Lamonte Companys budgeted balance sheet as of December 31.

Lamonte Company reports the following budgeted December 31 adjusted trial balance. Credit Debit $ 50,000 120,000 64,000 125,000 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation-Equipment Accounts payable Loan payable Common stock Retained earnings (beginning year balance) Sales Cost of goods sold Loan interest expense Depreciation expense Salaries expense Totals $ 25,000 34,000 22,000 200,000 58,000 520,000 360,000 8,000 10,000 122,000 $ 859,000 $ 859,000 Prepare the budgeted income statement for the current year ended December 31. Ignore income taxes. LAMONTE COMPANY Budgeted Income Statement For Year Ended December 31 Gross profit Selling, general and administrative expenses 0 $ 0 LAMONTE COMPANY Budgeted Balance Sheet December 31 Assets 0 Total Assets Liabilities Total liabilities Equity Total Equity Total Liabilities and Equity