Question

The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:

	Ending Balances
Cash		?
Accounts receivable	$	8,100
Supplies inventory	$	3,200
Equipment	$	34,000
Accumulated depreciation	$	16,000
Accounts payable	$	1,800
Common stock	$	5,000
Retained earnings		?

Check my work Exercise 8-9 Budgeted Balance Sheet [LO8-10] The management of Mecca Copy, a photocopying center located on University Avenue, has complled the following data to use In preparing its budgeted balance sheet for next year Ending $ ,100 $ 3,20o $ 3,000 Accounts receivable Supplles inventory Equipaant AccunuLated depreciation 16,000 Accounts payable Common stock $ 1,800 $5,000 The beginning balance of retained earnings was $28,0o0, net Income is budgeted to be $11,500, and dividends are budgeted to be S4,800. Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be Indicated by a minus sign.) Assots Current assets Cash Accounts rocervable Supplies inventory S 12 200 6.100 3.200 Total current assots S 23,500 Plant and equipment: Plant and equipment, net Total assots S 23,500 Liabilities and StockholderS' Equity Current labiiios Total stockholders oquty Total liabilities and stockholders oquity

Answer 1

	Mecca Copy
	Budgeted Balance Sheet
	Assets
	Current Assets
	Cash	$12,200
	Accounts Receivable	$8,100
	Supplies Inventory	$3,200
	Total Current Assets.		$23,500
	Plant and equipment
	Equipment	$34,000
	Accumulated depreciation	-$16,000
	Plant and equipment net		$18,000
	Total Assets		$41,500
	Liabilities and Stockholder's Equity
	Current Liabilities
	Accounts payable		$1,800
	Stockholders' Equity
	Common Stock	$5,000
	Retained Earnings	$34,700
	Total Stockholders' equity		$39,700
	Total Liabilities and Stockholder's Equity		$41,500
Working
	Retained Earnings
	Beginning Balance	$28,000
	Add:Net Income	$11,500
	Less: Dividend	$4,800
	Ending Balance	$34,700
Note: Cash is the balancing figure of Total liabilities and stockholders'equity
less Plant and equipment net and other current assets