Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 2048, is prepared by the Accounting Department of Regina Soap Co.: C Accounts Receivable Finished Goods $10.00 200.000 4200 22.00 20.20 Prept penes Plantando Acme Depreciation and women Accounts Payable Camo Stack, 510 Retained mig 532.000 2.000 Factory output and sales for 2049 are expected to total 25,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 2019, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated costs and penses (Totalfower) (Porto) Cost of goods manufactured and sold: Direct me Director Deprecated and woment Other factory over Selling expenses 2.100 2000 Advertising Machine Annie ome and offers S Miscellaneous expense Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $178,400 on 2049 taxable income will be paid during 2049, Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $131,000 cash in May. Required: 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2049 Sales Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses Income before income tax 2. Prepare a budgeted balance sheet as of December 31, 2019. Regina Soap Co. Budgeted Balance Sheet December 31, 2049 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2010, the following tentative trial balance as of December 31, 2018, is prepared by the Accounting Department of Regina Soap Co Cash $109.100 Accounts Receivable 210,600 Finished Goods 44,200 Work in Process 29.500 Materials 48,400 Prepaid Expenses 3.600 Plant and Equipment 456,600 Accumulated Depreciation-Plant and Equipment $209,200 Accounts Payable 145.400 Common Stock, $10 par 350.000 Retained Earnings 227,400 5932,000 $932,000 Factory output and sales for 2049 are expected to total 25,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 2019, are expected to remain unchanged from the balances at the beginning of the year Budget estimates of manufacturing costs and operating expenses for the year are summarized as foliows Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials 523 Direct labor 7 Factory overhead: Depreciation of plant and equipment $25,000 Other factory overhead 7,800 Selling expenses: Sales salaries and commissions 89,800 11.5 Advertising 75,000 Miscellaneous selling expense 6,500 2 Administrative expenses: Office and officers salaries 59,000 5.5 Supplies 3,000 1 Miscellaneous administrative expense 1,600 1.5 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances, Federal income tax of $178,400 on 2079 taxable income will be paid during 2009. Regular quarterly cash dividends of 5 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $131,000 cash in May. Required: Chapter 22 Homework Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $178,400 on 2049 taxable income will be paid during 2049. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that foxed assets will be purchased for $131,000 cash in May, Required: 1. Prepare a budgeted income statement for 2019, Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2049 Sales Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expenses Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses Income before income tax Feedback Check My Work Use Information from the expected sales, cost of goods manufactured and sold, and selling and administrative expenses 2. Prepare a budgeted balance sheet as of December 31, 2049. Regina Soap Co Budgeted Balance Sheet December 31, 2019 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Stockholders Equity Total stockholders' equity