BALLENTINE COMPANY Post-Closing Trial Balance December 31, 2018 Account Debit Credit Cash $ 45,000 Accounts Receivable 17,900 Raw Materials Inventory 7,000 Finished Goods Inventory 25,900 Equipment 120,000 Accumulated Depreciation $ 20,000 Accounts Payable 17,300 Common Stock 85,000 Retained Earnings 93,500 $ 215,800 Totals $215,800 $ 305,500 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead 40,000 12,500 2,600 Depreciation 800 Insurance and property ta»es 1,100 Budgeted cost of goods sold Budgeted selling and administrative expenses: 71,300 Salaries expense 7,000 Rent expense 3,500 Insurance expense 2,000 Depreciation expense 350 Supplies expense 3,055 Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) 263,500 44,000 34,000

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Chapter9: Metric-analysis Of Financial Statements
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Problem 9.4.13P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
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Preparing a financial budget—budgeted income statement and balance sheet

Ballentine Company has the following post-closing trial balance on December 31, 2018:

The company’s accounting department has gathered the following budgeting information for the first quarter of 2019:

Additional information:

  • Direct materials purchases are paid 50% in the quarter purchased and 50%, in the next quarter.
  • Direct labor, ma following budgeted income statement nufacturing overhead selling and administrative costs, and income tax expense are paid in the quarter incurred.
  • Accounts payable at December 31, 2018 are paid in the first quarter of 2019.

Requirements

  1. Prepare Ballentine Company’s budgeted income statement for the first quarter of 2019.
  2. Prepare Ballentine Company’s budgeted balance sheet as of March 31, 2019.
BALLENTINE COMPANY
Post-Closing Trial Balance
December 31, 2018
Account
Debit
Credit
Cash
$ 45,000
Accounts Receivable
17,900
Raw Materials Inventory
7,000
Finished Goods Inventory
25,900
Equipment
120,000
Accumulated Depreciation
$ 20,000
Accounts Payable
17,300
Common Stock
85,000
Retained Earnings
93,500
$ 215,800
Totals
$215,800
Transcribed Image Text:BALLENTINE COMPANY Post-Closing Trial Balance December 31, 2018 Account Debit Credit Cash $ 45,000 Accounts Receivable 17,900 Raw Materials Inventory 7,000 Finished Goods Inventory 25,900 Equipment 120,000 Accumulated Depreciation $ 20,000 Accounts Payable 17,300 Common Stock 85,000 Retained Earnings 93,500 $ 215,800 Totals $215,800
$ 305,500
Budgeted total sales, all on account
Budgeted direct materials to be purchased and used
Budgeted direct labor cost
Budgeted manufacturing overhead costs:
Variable manufacturing overhead
40,000
12,500
2,600
Depreciation
800
Insurance and property ta»es
1,100
Budgeted cost of goods sold
Budgeted selling and administrative expenses:
71,300
Salaries expense
7,000
Rent expense
3,500
Insurance expense
2,000
Depreciation expense
350
Supplies expense
3,055
Budgeted cash receipts from customers
Budgeted income tax expense
Budgeted purchase and payment for capital expenditures
(additional equipment)
263,500
44,000
34,000
Transcribed Image Text:$ 305,500 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead 40,000 12,500 2,600 Depreciation 800 Insurance and property ta»es 1,100 Budgeted cost of goods sold Budgeted selling and administrative expenses: 71,300 Salaries expense 7,000 Rent expense 3,500 Insurance expense 2,000 Depreciation expense 350 Supplies expense 3,055 Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) 263,500 44,000 34,000
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