Preparing a financial budget—budgeted balance sheet Use the following June actual ending balances and July 31, 2018, budgeted amounts for Omas to prepare a budgeted balance sheet for July 31, 2018. June 30, Merchandise Inventory balance, $17,770 July purchase of Merchandise Inventory, $4,400, paid in cash July payments of Accounts Payable, $8,400 June 30 Accounts Payable balance, $10,700 June 30 Furniture and Fixtures balance, $34,100; Accumulated Depreciation balance, $29,880 June 30 total stockholders’ equity balance, $28,020 July Depreciation Expense, $500 Cost of Goods Sold, 60% of Saks Other July expenses including income tax $2,000, paid in cash June 30 Cash balance, $11,600 July budgeted Sales, all on account, $12,690 June 30 Accounts Receivable balance, $5,130 July cash receipts from collections on account, $14,700 (Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.)

Question

Preparing a financial budget—budgeted balance sheet

Use the following June actual ending balances and July 31, 2018, budgeted amounts for Omas to prepare a budgeted balance sheet for July 31, 2018.

  • June 30, Merchandise Inventory balance, $17,770
  • July purchase of Merchandise Inventory, $4,400, paid in cash
  • July payments of Accounts Payable, $8,400
  • June 30 Accounts Payable balance, $10,700
  • June 30 Furniture and Fixtures balance, $34,100; Accumulated Depreciation balance, $29,880
  • June 30 total stockholders’ equity balance, $28,020
  • July Depreciation Expense, $500
  • Cost of Goods Sold, 60% of Saks
  • Other July expenses including income tax $2,000, paid in cash
  • June 30 Cash balance, $11,600
  • July budgeted Sales, all on account, $12,690
  • June 30 Accounts Receivable balance, $5,130
  • July cash receipts from collections on account, $14,700

(Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.)

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