MANAGERIAL ACCOUNTING
16th Edition
ISBN: 9781260901320
Author: Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 8, Problem 9E
EXERCISE 8-9 Budgeted
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 |
| $16,000 | |
| Accounts payable | $1,800 |
| Common stock | $5,000 |
| Retained earnings | ? |
The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800.
Required:
Prepare the company's budgeted balance sheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Check my work
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
?
$ 8,100
Cash
Accounts receivable
Supplies inventory
Equipment
$ 3,200
$ 34,000
Accumulated depreciation
$ 16,000
$ 1,800
$ 5,000
?
Accounts payable
Common stock
Retained earnings
The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to
be $4,800.
Required:
Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Total current assets
5
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.)
es
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
?
$ 9,200
$ 2,800
$ 39,500
$ 16,000
Current assets:
$ 2,900
$ 5,000
?
The beginning balance of retained earnings was $28,000, net income is budgeted to be $17,800, and dividends are budgeted to be
$3,700.
Required:
Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Mecca Copy
Budgeted Balance Sheet
Assets
Chapter 8 Solutions
MANAGERIAL ACCOUNTING
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6QCh. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 -
The Excel worksheet form that appears below is to...Ch. 8 - Prob. 2AECh. 8 - Prob. 1F15Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 11F15Ch. 8 - Prob. 12F15Ch. 8 - Prob. 13F15Ch. 8 - Prob. 14F15Ch. 8 - Prob. 15F15Ch. 8 - EXERCISE 8-1 Schedule of Expected Cash Collections...Ch. 8 - Prob. 2ECh. 8 - EXERCISE 8-3 Direct Materials Budget LOW Three...Ch. 8 -
EXERCISE 8-4 Direct Labor Budget...Ch. 8 -
EXERCISE 8-5 Manufacturing Overhead Budget...Ch. 8 -
...Ch. 8 -
The company's beginning cash balance for the...Ch. 8 - EXERCISE 8-8 Budgeted Income Statement LO8-9 Gig...Ch. 8 - EXERCISE 8-9 Budgeted Balance Sheet LO8-10 The...Ch. 8 -
EXERCISE 8-10 Production and Direct Materials...Ch. 8 - EXERCISE 8-11 Cash Budget Analysis LOB-8 A cash...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 -
EXERCISE 8-14 Sales and Production Budgets LO8-2,...Ch. 8 - EXERCISE 8-15 Direct Labor and Manufacturing...Ch. 8 - EXERCISE 8-16 Direct Materials and Direct Labor...Ch. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - PROBLEM 8-19 Cash Budget: Income Statement:...Ch. 8 -
PROBLEM 8-20 Cash Budget; Income Statement;...Ch. 8 - Prob. 21PCh. 8 -
PROBLEM 8-22 Evaluating a Company’s Budget...Ch. 8 - PROBLEM 8—23 schedule or Expected cash...Ch. 8 - PROBLEM 8-24 Cash Budget with Supporting Schedules...Ch. 8 - PROBLEM B-25 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-26 Behavioral Aspects of Budgeting:...Ch. 8 - (
$
55,000
$ 55, 000
...Ch. 8 -
PROBLEM 8-28 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-29 Completing a Master Budget LO8-2,...Ch. 8 - PROBLEM 8-30 Integration of the Sales, Production,...Ch. 8 - Prob. 31PCh. 8 -
CASE 8-32 Evaluatinga Company’s Budget Procedures...Ch. 8 - CASE 8-33 Master Budget with Supporting Schedules...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Problem 13-58 (Static) Budgeted Purchases and Cash Flows (LO 13-4, 5, 6) Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $874,000, inventories of $618,800, and accounts payable of $266,110. The budget is to be based on the following assumptions. Each month’s sales are billed on the last day of the month. Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). The billings are collected as follows: 70 percent within the discount period, 15 percent by the end of the month, and 12 percent by the end of the following month. Three percent is uncollectible. Purchase data are as follows. Of all purchases of merchandise and selling, general, and administrative expenses, 60 percent is paid in the month purchased and the…arrow_forward8-3 and 8-7 Exercises 8-1, 8-2, 8-3, 8-7 newconnect.mheducation.com/flow/connect.html 3-1,8-2, 8-3, 8-7 6 Pалes Garden Depot Is a retaller that is preparing Its budget for the upcoming fiscal year. Management has prepared the following summary of Its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 440,008 $ 342,800 $ 320,000 $ 372,000 $ 370,000 $ 332,000 $ 398,000 $ 352,000 The company's beginning cash balance for the upcoming fiscal year will be $27,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterty Interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay Its loans, or any part of Its loans, at the end of any quarter. Interest payments are due on any principal at the time It Is repaid. For simplicity, assume that Interest Is not compounded. Requlred: Prepare the company's cash budget for the upcoming…arrow_forwardExercise 8-9 (Static) Budgeted Balance Sheet [LO8-10] Mecca Copy, a photocopying center located on University Avenue, provided the following data to prepare a budgeted balance sheet for next year: Ending Balances. ? Cash Accounts receivable. Supplies inventory Equipment Accumulated depreciation Accounts payable Common stock Retained earnings The beginning balance of retained earnings was $28,000, budgeted net income is $11,500, and budgeted dividends are $4,800. $ 8,100 $ 3,200 $ 34,000 $ 16,000 $ 1,800 $5,000 Required: Prepare the company's budgeted balance sheet. Note: Amounts to be deducted should be indicated by a minus sign.arrow_forward
- Paul's Pool Service provides pool cleaning, chemical application, and pool repairs for residential customers. Clients are billed weekly for services provided and usually pay 40 percent of their fees in the month the service is provided, In the month following service, Paul collects 50 percent of service fees. The final 10 percent is collected in the second month following service. Paul purchases his supplies on credit, and pays 50 percent in the month of purchase and the remaining 50 percent in the month following purchase. Of the supplies Paul purchases, 85 percent is used in the month of purchase, and the remainder is used in the month following purchase. The following information is available for the months of June, July, and August, which are Paul's busiest months: • June 1 cash balance $14,800. • June 1 supplies on hand $4,000. • June 1 accounts receivable $8,300. • June 1 accounts payable $3,900. · Estimated sales for June, July, and August are $24,900, $37,400, and $39,900,…arrow_forwardProblem 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…arrow_forwardProblem 13-58 (Static) Budgeted Purchases and Cash Flows (LO 13-4, 5, 6) Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $874,000, inventories of $618,800, and accounts payable of $266,110. The budget is to be based on the following assumptions. Each month’s sales are billed on the last day of the month. Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). The billings are collected as follows: 70 percent within the discount period, 15 percent by the end of the month, and 12 percent by the end of the following month. Three percent is uncollectible. Purchase data are as follows. Of all purchases of merchandise and selling, general, and administrative expenses, 60 percent is paid in the month purchased and the…arrow_forward
- Problem 13-58 (Algo) Budgeted Purchases and Cash Flows (LO 13-4, 5, 6) Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $12,000, accounts receivable of $859,000, inventories of $112,815, and accounts payable of $36,052. The budget is to be based on the following assumptions. Each month’s sales are billed on the last day of the month. Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). The billings are collected as follows: 65 percent within the discount period, 20 percent by the end of the month, and 12 percent by the end of the following month. Three percent is uncollectible. Purchase data are as follows. Of all purchases of merchandise and selling, general, and administrative expenses, 58 percent is paid in the month purchased and the…arrow_forwardActivity-Based Budget Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,030 for the Sleepeze, 12,080 for the Plushette, and 4,560 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at $65,450, a marketing research assistant at $45,000, and an administrative assistant at $24,800) are budgeted for $135,250 next year. b. Depreciation on the offices and equipment is $17,450 per year. c. Office supplies and other expenses total $23,300 per year. d. Advertising has been steady at $17,850 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of…arrow_forwardExercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year January February March Cash Receipts Cash payments $ 470,900 $ 523,000 406,000 467,000 353,900 536,000 Kayak requires a minimum cash balance of $40,000 at each month-end Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Beginning cash balance Total cash…arrow_forward
- Problem 5 Prepare a cash budget by month for the month quarter ending September 30, 2009, from the following data obtained from the Peninsula Co. Support your solution with schedules of estimated receipts & payments. August P 16,000 150,000 120,000 18,000 2,000 July P 12,000 110.000 90,000 Operating Expenses 15,000 September P 18,000 120,000 110,000 16,000 Cash sales Credit sales Purchases Interest expense Credit are collected 50% in the month of sales. 40% in the month following, 8% in the second month following and 2% uncollectible. Credit sales for May and June are expected to be P100,000 and P90,000 respectively. Purchases of merchandise, all on account are paid 60% in the month of purchase and 40% in the month fallowing. Purchase for June are estimated at 80,000 are paid in the month incurred. Cash balance on June 30, 2009 is P27,000.arrow_forwardFAS: Problems for Budgeting Part 3 Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,780,000 Quarter 2 5,120,000 Quarter 3 6,660,000 Quarter 4 8,600,000 In Shalimar's experience, 10 percent of sales are paid cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,700,000 and for the fourth quarter of the current year are $7,210,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year 4, current year 1, next year 2, next year 3, next year 4, next year Construct a…arrow_forwardQuestion 9 View Policies Current Attempt in Progress The following information was taken from Waterway Industries's cash budget for the month of July: Beginning cash $450000 balance 364000 Cash receipts 494000 Cash disbursements If the company has a policy of maintaining a minimum end of the month cash balance of $390000, the amount the company would have to borrow is O $320000. O $60000. O $26000. $70000. hp 3 40 fho l ins prt sc 44 delete home & 7 num backspace lock P 7 H K L enter pause Σ Zarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY