Question

The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2019. ZIGDY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash Accounts receivable Raw materials inventory Finished goods Inventory Total current assets Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Connon stock Retained earnings Total stockholders' equity Total liabilities and equity $ 65.688 437,760 90,200 388.628 900,988 638,888 (165,000 465,000 $ 1.365,988 $ 204,500 27,000 231,500 515,000 746,500 35e,eee 269,488 619.498 $ 1.365,988

This is the one that I am having trouble with.  

Here is the other financial statements that go with this problem. As you can see, everything is correct.

Answer 1

In case of raw materials inventory, since closing stock of quantity is 5500 units closing value of RM inventory will 5500 units * $20 per unit cost = $ 110,000.

In case of bank loan payable, since the loan is taken on the last day to maintain the minimum cash balance. Interest payable is not required to be provided for the month of June. Interest will be payable for the month of July, hence no payable entry required and thus balance of Bank loan payable will be $ 47,680 the amount which is taken as loan from bank.

Retained earnings balance = Opening Balance + Income - Dividend = $269488 + $ 22860 - $ 25000 = $ 267,348

Zigby Manufacturing
Budgeted Balance Sheet June 30, 2019
Assets
Cash	55000
Accounts Receivable	441600
Raw Materials Inventory	110000
Finished Goods Inventory	308028
Total current assets		914628
Equipment	775000
Accumulated Depreciation	-270060
Equipment, net		504940
Total assets		1419568
Liabilities and Equity
Liabilities
Accounts Payable	224300
Bank loan payable	47680
Income taxes payable	15240
Total current liabilities		287220
Long term note payable		515000
Stockholder's equity
Common Stock	350000
Retained Earnings	267348
Total Stockholder's equity		617348
Total liabilities and equity		1419568