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. Cash Accounts receivable Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings Ending Balances ? $ 9,000 $ 2,400 $ 38,500 $ 15,600 $ 2,700 $ 5,000 ? The beginning balance of retained earnings was $26,000, net income is budgeted to be $15.400, and dividends are budgeted to be $5,400 Required: Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.) Mecca Copy Budgeted Balance Sheet

Answer 1

BUDGETED BALANCE SHEET
Name of the Company Mecca Copy
Balance Sheet as at ………………………
Particulars	$	$
I. EQUITY AND LIABILITIES
(1) Shareholders’ funds
(a) Share capital (Common Stock)		$5,000
(b) Reserves and surplus (Retained Earnings)
At the beginning of the year	$26,000
Add: Profit earned during the year	$15,400
Less: Dividend Distributed	-$5,400
		$36,000
(c) Money received against share warrants
(2) Share application money pending allotment
(3) Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (Net)
(c) Other Long term liabilities
(d) Long-term provisions
(4) Current liabilities
(a) Short-term borrowings
(b) Trade payables		$2,700
(c) Other current liabilities
(d) Short-term provisions
TOTAL		$43,700
II. ASSETS
Non-current assets
(1)        (a) Fixed assets
(i) Tangible assets (Equipment)
Cost	$38,500
Less: Accumulated Depreciation	-$15,600
		$22,900
(ii) Intangible assets
(iii) Capital work-in-progress
(iv) Intangible assets under development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets
(2) Current assets
(a) Current investments
(b) Inventories		$2,400
(c) Trade receivables		$9,000
(d) Cash and cash equivalents (Balancing Figure)		$9,400
(e) Short-term loans and advances
(f) Other current assets
TOTAL		$43,700