Exercise 9-21 Missing Amounts; Various Types of Budgets (LO 9-3, 9-5, 9-6)Fill in the missing amounts in the following schedules.Complete this question by entering your answers in the tabs below.Required 1Required 2 Required 3Required 4Required 5Fill in the missing amounts in the following schedules.Retained earnings,12/31/x0$ 2,050,000Net income for 20x1400,000Dividends paid in 20x1Retained earnings,12/31/x1< Required 4Required 5 >*Half of each month's sales are on account. March sales amounted to $60,000.160% of credit sales is collected in the month of sale; 40% is collected in the following month.+Yen is the Japanese national currency.

The statement of retained earnings is prepared to record changes in retained earnings such as net…

Exercise 9-21 Missing Amounts; Various Types of Budgets (LO 9-3, 9-5, 9-6) Fill in the missing amounts in the following schedules. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Fill in the missing amounts in the following schedules. Retained earnings, 12/31/x0 Net income for 20x1 Dividends paid in 20x1 Retained earnings, 12/31/x1 $ 2,050,000 400,000 < Required 4 Required 5 >

Exercise 9-21 Missing Amounts; Various Types of Budgets (LO 9-3, 9-5, 9-6) Fill in the missing amounts in the following schedules. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Fill in the missing amounts in the following schedules. Retained earnings, 12/31/x0 Net income for 20x1 Dividends paid in 20x1 Retained earnings, 12/31/x1 $ 2,050,000 400,000 < Required 4 Required 5 >

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 21.5CP: Integrity and evaluating budgeting systems The city of Milton has an annual budget cycle that begins...

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Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Cash. 26,000 Finished Goods.............................................. 16,900 Work in Process.............................................. 4,200 Materials.................................................... 6,400 Prepaid Expenses............................................ 600 Plant and Equipment......................................... 82,000 Accumulated DepreciationPlant and Equipment............. 32,000 Accounts Payable............................................ 14,800 Common Stock. 1.50 par..................................... 30,000 Retained Earnings............................................ 83,100 159,900 159,900 Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials................................... 30.00 Direct labor....................................... 840 Factory overhead: Depreciation of plant and equipment............ 4,000 Other factory overhead......................... 1,400 4.80 Selling expenses: Sales salaries and commissions..................... 12,800 13.50 Advertising....................................... 13,200 Miscellaneous selling expense..................... 1,000 2.50 Administrative expenses: Office and officers salaries......................... 7,800 7.00 Supplies.......................................... 500 1.20 Miscellaneous administrative expense.............. 400 2.40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances, federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y9. 2. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y8, the following tentative trial balance as of December 31, 20Y7, is prepared by the Accounting Department of Mesa Publishing Co.: Cash 26,000 Accounts Receivable 23,800 Finished Goods 16,900 Work in Process 4,200 Materials 6,400 Prepaid Expenses 600 Plant and Equipment 82.000 Accumulated DepreciationPlant and Equipment 32,000 Accounts Payable 14.800 Common Stock. 1.50 par 30,000 Retained Earnings 83,100 159,900 159,900 Factory output and sales for 20Y8 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y8, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials 30.00 Direct labor B.40 Factory overhead: Depreciation of plant and equipment 4,000 Other factory overhead 1,400 4.30 Selling expenses: Sales salaries and commissions 12,800 13.50 Advertising 13,200 Miscellaneous selling expense 1,000 2.50 Administrative expenses: Office and officers salaries 7,800 7.00 Supplies 500 1.20 Miscellaneous administrative expense 400 2.40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y8 taxable income will be paid during 20Y8. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions 1. Prepare a budgeted income statement for 20Y8. 2. Prepare a budgeted balance sheet as of December 31,20Y8, with supporting calculations.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, the following tentative trial balance as of December 31, 2016, is prepared by the Accounting Department of Regina Soap Co.: Cash............................................................. 85,000 Accounts Receivable............................................... 125,600 Finished Goods................................................... 69,300 Work in Process................................................... 32,500 Materials......................................................... 48,900 Prepaid Expenses................................................. 2,600 Plant and Equipment.............................................. 325,000 Accumulated Depreciation Plant and Equipment.................. 156,200 Accounts Payable................................................. 62,000 Common Stock, 10 par........................................... 180,000 Retained Earnings................................................. 290,700 688,900 688,900 Factory output and sales for 2017 are expected to total 200,000 units of product, which are to be sold at 5.00 per unit. The quantities and costs of the inventories at December 31, 2017, are expected to remain unchanged from the balances at The beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Cost of goods manufactured and sold: Fixed (Total for Year) Direct materials................................................ 1.10 Direct labor.................................................... 0.65 Factory overhead: Depreciation of plant and equipment.......................... 40,000 Other factory overhead....................................... 12,000 0.40 Selling expenses: Sales salaries and commissions.................................. 46,000 0.45 Advertising.................................................... 64,000 Miscellaneous selling expense.................................. 6,000 0.25 Administrative expenses: Office and officers salaries...................................... 72,400 0.12 Supplies....................................................... 5,000 0.10 Miscellaneous administrative expense........................... 4,000 0.05 Balances, of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 30,000 on 2017 taxable income will be paid during 2017. Regular quarterly cash dividends of 0.15 per share are expected to be declared and paid in March, June, September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 75,000 cash in May. Instructions 1. Prepare a budgeted income statement for 2017. 2. Prepare a budgeted balance sheet as of December 31, 2017, with supporting calculations.
Communication The city of Milton has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each department. The annual budget is divided by 12 months to provide a constant monthly static budget. On June 30, all unspent budgeted monies for the budget year from the various city departments must be returned to the General Fund. Thus, if department heads fail to use their budget by year-end, they will lose it. A budget analyst prepared a chart of the difference between the monthly actual and budgeted amounts for the recent fiscal year. The chart was as follows: Write a memo to Stacy Collins, the city manager, interpreting the chart and suggesting improvements to the budgeting system.
Integrity and evaluating budgeting systems The city of Milton has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each department. The annual budget is divided by 12 months to provide a constant monthly static budget. On June 30, all unspent budgeted monies for the budget year from the various city departments must be returned to the General Fund. Thus, if department heads fail to use their budget by year-end, they will lose it. A budget analyst prepared a chart of the difference between the monthly actual and budgeted amounts for the recent fiscal year. The chart was as follows: a. Interpret the chart. b. Suggest an improvement in the budget system.
Question 38 Most budgets are prepared on a cash or modified cash basis. T F Question 39 When Spruce City receives goods at a cost of $9,700 that were encumbered in the prior year for $10,000, which of the following entries are required (assume that encumbrances lapse at year end)? a. Debit Expenditures $9,700; Credit Vouchers Payable $9,700; no entry for Encumbrances. b. Debit Expenditures $9,700 and Reserve for Encumbrances $10,000; Credit Vouchers Payable $9,700 and Encumbrances $10,000. c. Debit Expenditures $10,000 and Reserve for Encumbrances $10,000; Credit Vouchers Payable $10,000 and Encumbrances $10,000. d. Debit Reserve for Encumbrances $10,000; Credit Encumbrances $10,000; no entry for Expenditures. Question 40 To close Reserve for Encumbrances at the end of the year which of the following entries should be made? a. Debit Reserve for Encumbrances; Credit Fund Balance. b. Debit Reserve for Encumbrances; Credit Encumbrances. c. Debit Fund Balance; Credit Reserve for…
TB Problem Qu. 10-287 Cicchetti Corporation uses customers... Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December: Cicchetti CorporationComparison of Actual Results to Planning BudgetFor the Month Ended December 31 Actual Results Planning Budget Variances Customers served 37,000 31,000 Revenue ($4.8q) $ 178,550 $ 148,800 $ 29,750 F Expenses: Wages and salaries ($37,400 + $1.6q) 100,000 87,000 13,000 U Supplies ($0.9q) 32,750 27,900 4,850 U Insurance ($14,400) 14,800 14,400 400 U Miscellaneous expense ($7,400 + $0.4q) 24,100 19,800 4,300 U Total expense 171,650 149,100 22,550 U Net operating income $ 6,900 $ -300 $ 7,200 F Required:Prepare the company's flexible budget performance report for…
Exercise 7 (Cash Budget Analysis) A cash budget, by quarters, is given below for a retail company. (000 omitted). The company requires a minimum cash balance of P5,000 to start each quarter. Quarter 1 2 3 4 Year Cash balance, beginning..................... P9 P? P? P? P? Add collections from customers….. ? ? 125 ? 391 Total cash available………………. 85 ? ? ? ? Less disbursements: Purchase of inventory….................. 40 58 ? 32 ? Operating expenses…………... ? 42 54 ? 180 Equipment purchases…................ 10 8 8 ? 36 Dividends…………………….. 2 2 2 2 ? Total disbursement………………..…
Problem 8-27 Cash Collections; Cash Disbursements; Budgeted Balance Sheet [LO8-2, LO8-3, LO8-4, LO8-10] Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30. The following information is available Deacon CompanyBalance SheetMarch 31 Assets Cash $ 55,400 Accounts receivable 41,200 Inventory 53,200 Buildings and equipment, net of depreciation 180,000 Total assets $ 329,800 Liabilities and Stockholders’ Equity Accounts payable $ 143,500 Common stock 70,000 Retained earnings 116,300 Total liabilities and stockholders’ equity $ 329,800 Budgeted Income Statements April May June Sales $ 144,000 $ 154,000 $ 174,000 Cost of goods sold 86,400 92,400 104,400 Gross margin 57,600 61,600 69,600 Selling and administrative expenses 20,300 21,800 24,800 Net operating income $ 37,300 $ 39,800 $ 44,800 Budgeting…
Problem 8-31 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 41,000 Accounts receivable 200,800 Inventory 57,900 Buildings and equipment (net) 351,000 Accounts payable $ 85,425 Common stock 500,000 Retained earnings 65,275 $ 650,700 $ 650,700 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 251,000 January $ 386,000 February $ 583,000 March $ 297,000 April $ 194,000 Sales are 20% for cash and 80% on credit. All payments on…
8) Problem 8-31 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 41,000 Accounts receivable 200,800 Inventory 57,900 Buildings and equipment (net) 351,000 Accounts payable $ 85,425 Common stock 500,000 Retained earnings 65,275 $ 650,700 $ 650,700 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 251,000 January $ 386,000 February $ 583,000 March $ 297,000 April $ 194,000 Sales are 20% for cash and 80% on credit. All payments on…
8 Problem 8-31 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 41,000 Accounts receivable 200,800 Inventory 57,900 Buildings and equipment (net) 351,000 Accounts payable $ 85,425 Common stock 500,000 Retained earnings 65,275 $ 650,700 $ 650,700 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 251,000 January $ 386,000 February $ 583,000 March $ 297,000 April $ 194,000 Sales are 20% for cash and 80% on credit. All payments on…