Consider the following June actual ending balances and July 31, 2024 budgeted amounts for Octovios: 1(Click the icon to view the information.) Prepare a budgeted balance sheet for July 31, 2024. (Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.) Complete the accounting equation for the July operating information. (Use a minus sign or parentheses to enter account reductions and contra asset balances and activity. If an input field is not used in the equation leave it empty; do not enter a zero. Abbreviations used: A/P = Accounts Payable, A/R = Accounts Receivable, Accum. Deprec. = Accumulated Depreciation, Merch. = Merchandise.) Stock- Merch. (Accum. Accounts holders' Cash + A/R + Inventory + Furniture + Deprec.) = Payable + equity June 30 balance $11,700 + $5,160 + $17,750 + $34,200 + $(29,810) = $10,400 + $28,600 Purchase inventory (4,700) + + 4,700 + + = + Payments of A/P (8,800) + + + + = (8,800) + Depreciation + + + + (900) = + (900) Cost of Goods Sold + + (6,050) + + = + (6,050) Other expenses (6,000) + + + + = + (6,000) Sales on account + 12,100 + + + = + 12,100 Cash receipts 14,200 + (14,200) + + + = + July 31 balance $6,400 + $3,060 + $16,400 + $34,200 + $(30,710) = $1,600 + $27,750 Start by preparing the asset section of the balance sheet, then prepare the liabilities and stockholders' equity section. Octovios Budgeted Balance Sheet July 31, 2024 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Total Current Assets Property, Plant, and Equipment: Furniture and Fixtures Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Stockholders' Equity Total Liabilities and Stockholders' Equity 1: More Info a. June 30 Merchandise Inventory balance, $17,750 b. July purchase of Merchandise Inventory, $4,700, paid in cash c. July payments of Accounts Payable, $8,800 d. June 30 Accounts Payable balance, $10,400 e. June 30 Furniture and Fixtures balance, $34,200; Accumulated Depreciation balance, $29,810 f. June 30 total stockholders' equity balance, $28,600 g. July Depreciation Expense, $900 h. Cost of Goods Sold, 50% of sales i. Other July expenses, including income tax, $6,000, paid in cash j. June 30 Cash balance, $11,700 k. July budgeted sales on account, $12,100 l. June 30 Accounts Receivable balance $5,160 m. July cash receipts from payments on account, $14,200
Consider the following June actual ending balances and July 31, 2024 budgeted amounts for Octovios: 1(Click the icon to view the information.) Prepare a budgeted balance sheet for July 31, 2024. (Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.) Complete the accounting equation for the July operating information. (Use a minus sign or parentheses to enter account reductions and contra asset balances and activity. If an input field is not used in the equation leave it empty; do not enter a zero. Abbreviations used: A/P = Accounts Payable, A/R = Accounts Receivable, Accum. Deprec. = Accumulated Depreciation, Merch. = Merchandise.) Stock- Merch. (Accum. Accounts holders' Cash + A/R + Inventory + Furniture + Deprec.) = Payable + equity June 30 balance $11,700 + $5,160 + $17,750 + $34,200 + $(29,810) = $10,400 + $28,600 Purchase inventory (4,700) + + 4,700 + + = + Payments of A/P (8,800) + + + + = (8,800) + Depreciation + + + + (900) = + (900) Cost of Goods Sold + + (6,050) + + = + (6,050) Other expenses (6,000) + + + + = + (6,000) Sales on account + 12,100 + + + = + 12,100 Cash receipts 14,200 + (14,200) + + + = + July 31 balance $6,400 + $3,060 + $16,400 + $34,200 + $(30,710) = $1,600 + $27,750 Start by preparing the asset section of the balance sheet, then prepare the liabilities and stockholders' equity section. Octovios Budgeted Balance Sheet July 31, 2024 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Total Current Assets Property, Plant, and Equipment: Furniture and Fixtures Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Stockholders' Equity Total Liabilities and Stockholders' Equity 1: More Info a. June 30 Merchandise Inventory balance, $17,750 b. July purchase of Merchandise Inventory, $4,700, paid in cash c. July payments of Accounts Payable, $8,800 d. June 30 Accounts Payable balance, $10,400 e. June 30 Furniture and Fixtures balance, $34,200; Accumulated Depreciation balance, $29,810 f. June 30 total stockholders' equity balance, $28,600 g. July Depreciation Expense, $900 h. Cost of Goods Sold, 50% of sales i. Other July expenses, including income tax, $6,000, paid in cash j. June 30 Cash balance, $11,700 k. July budgeted sales on account, $12,100 l. June 30 Accounts Receivable balance $5,160 m. July cash receipts from payments on account, $14,200
Chapter3: Setting Up A New Company
Section: Chapter Questions
Problem 6Q
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Consider the following
June
actual ending balances and
July 31, 2024
budgeted amounts for
Octovios:
1(Click
the icon to view the information.)Prepare a budgeted balance sheet for
accounting equation to determine the ending balance of each account.)
July 31, 2024.
(Hint:
It may be helpful to trace the effects of each transaction on the Complete the accounting equation for the
Depreciation , Merch. = Merchandise.)
July
operating information. (Use a minus sign or parentheses to enter account reductions and contra asset balances and activity. If an input field is not used in the equation leave it empty; do not enter a zero. Abbreviations used: A/P = Accounts Payable, A/R = Accounts Receivable, Accum. Deprec. = Accumulated |
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Stock-
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Merch.
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(Accum.
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Accounts
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holders'
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Cash
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+
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A/R
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+
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Inventory
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+
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Furniture
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+
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Deprec.)
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=
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Payable
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+
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equity
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June 30 balance
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$11,700
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+
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$5,160
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+
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$17,750
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+
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$34,200
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+
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$(29,810)
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=
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$10,400
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+
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$28,600
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Purchase inventory
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(4,700)
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+
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+
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4,700
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+
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+
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=
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+
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Payments of A/P
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(8,800)
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+
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+
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+
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+
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=
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(8,800)
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+
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Depreciation
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+
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+
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+
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+
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(900)
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=
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+
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(900)
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Cost of Goods Sold
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+
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+
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(6,050)
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+
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+
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=
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+
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(6,050)
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Other expenses
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(6,000)
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+
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+
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+
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+
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=
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+
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(6,000)
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Sales on account
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+
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12,100
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+
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+
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+
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=
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+
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12,100
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Cash receipts
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14,200
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+
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(14,200)
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+
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+
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+
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=
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+
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July 31 balance
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$6,400
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+
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$3,060
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+
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$16,400
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+
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$34,200
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+
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$(30,710)
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=
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$1,600
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+
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$27,750
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Start by preparing the asset section of the balance sheet, then prepare the liabilities and stockholders' equity section.
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Octovios
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Budgeted Balance Sheet
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July 31, 2024
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Assets
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Current Assets:
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Cash
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Accounts Receivable
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Merchandise Inventory
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Total Current Assets
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Property, Plant, and Equipment:
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Furniture and Fixtures
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Less:
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Total Assets
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Liabilities
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Current Liabilities:
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Accounts Payable
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Stockholders' Equity
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Stockholders' Equity
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Total Liabilities and Stockholders' Equity
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1: More Info
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a.
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June 30 Merchandise Inventory balance, $17,750
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b.
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July purchase of Merchandise Inventory, $4,700, paid in cash
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c.
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July payments of Accounts Payable, $8,800
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d.
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June 30 Accounts Payable balance, $10,400
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e.
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June 30 Furniture and Fixtures balance, $34,200; Accumulated Depreciation balance, $29,810
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f.
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June 30 total stockholders' equity balance, $28,600
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g.
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July Depreciation Expense, $900
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h.
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Cost of Goods Sold, 50% of sales
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i.
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Other July expenses, including income tax, $6,000, paid in cash
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j.
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June 30 Cash balance, $11,700
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k.
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July budgeted sales on account, $12,100
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l.
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June 30 Accounts Receivable balance $5,160
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m.
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July cash receipts from payments on account, $14,200
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YOU ANSWERED:
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