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Year-end accounts payable: 50% of ending inventory of raw materials. Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid
Year-end accounts payable: 50% of ending inventory of raw materials. Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid as incurred. Dividends declared and income taxes for 2022 will not be paid until 2023. Cash Raw materials inventory Equipment BARRETT COMPANY Balance Sheet December 31, 2021 Assets Less: Accumulated depreciation 4.000 $36,000 Total assets $20,000 $10,000 $40,000 $ $66,000 Liabilities and Stockholders' Equity Accounts payable Notes payable Total liabilities Common stock Retained earnings $14.000 $ 5,000 $22.000 $27,000 $25,000 $39,000 Total liabilities and stockholders' equity Instructions: $66,000 (a) Calculate budgeted cost of goods sold. (b) Prepare a budgeted income statement for the year ending December 31, 2022. (c) Prepare a budgeted balance sheet as of December 31, 2022. K Year-end accounts payable: 50% of ending inventory of raw materials. Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid as incurred. Dividends declared and income taxes for 2022 will not be paid until 2023. Cash Raw materials inventory Equipment BARRETT COMPANY Balance Sheet December 31, 2021 Assets Less: Accumulated depreciation 4,000 $36.000 Total assets $20,000 $10,000 $40,000 $ $66.000 Liabilities and Stockholders' Equity Accounts payable Notes payable Total liabilities Common stock Retained earnings $14,000 $ 5,000 $22.000 $27,000 $25,000 $39.000 Total liabilities and stockholders' equity Instructions: $66,000 (a) Calculate budgeted cost of goods sold. (b) Prepare a budgeted income statement for the year ending December 31, 2022. (c) Prepare a budgeted balance sheet as of December 31, 2022
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