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Tyler Sheen is the owner of Stopby Inn. He provided the selected opening balances as at June 1, 2020 and the budgeted information for June and July 2020. Selected Opening Balances as of June 1, 2020 Cash $108,700
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- Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The company’s balance sheet as of June 30 is shown below: Millen Corporation Balance Sheet June 30 Assets Cash $ 120,000 Accounts receivable 166,000 Inventory 37,200 Plant and equipment, net of depreciation 554,800 Total assets $ 878,000 Liabilities and Stockholders’ Equity Accounts payable $ 93,000 Common stock 586,000 Retained earnings 199,000 Total liabilities and stockholders’ equity $ 878,000 Millen’s managers have made the following additional assumptions and estimates: Estimated sales for July and August are $310,000 and $330,000, respectively. Each month’s sales are 20% cash sales and 80% credit sales. Each month’s credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 20% of the…arrow_forwardPlease complete all the requirementsarrow_forwardRequired Information TES-417 Inc. is a retaller. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. TES-417 Inc. Balance Sheet March 31 Assets Accounts receivable Inventory 129,880 52, see 217,000 Plant and equipment, net of depreciation. Total assets $ 480.500 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 55, see Total liabilities and stockholders' equity $ 480.500 TES-417 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $280,000, $300,000, $290,000, and $310,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 25% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for…arrow_forward
- LB Enterprises (LB) is preparing its budget for the first quarter of 2019. LB's balance sheet as of December 31, 2018 is as follows: Assets Liabilities Cash $5,000 Accounts Payable $9500 Accounts Recievable 28,000 Inventories Direct Materials 8,100 Finished Goods (500 Units) 16,870 Stockholders Equity Equipment - gross 45,000 Accumulated depreciation 15.000 Common Stock $15,000 Net Equipment 30,000 Retained Earnings 63,470 Total Assets $87,970 Total Liabilities and $87,960 Equity LB sells one product for $45/unit. The Company forecasts that it will sell 2,000; 1,500; 1,600; and 1,700 units in January, February, March and April, respectively. • Sales to customers are all on credit. 40% of the cash for these sales is collected in the month of the sale and the remaining 60% is collected in the following month. LB wants finished goods inventory equal to 25% of the next month's sales on hand at the end of each month. LB wants direct materials equal to 75% of the current month's production…arrow_forwardRequired information [The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company's balance sheet as of June 30th is shown below: Beech Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 94,000 145,000 59,400 222,000 $520,400 $ 83,000 331,000 106,400 $ 520,400 Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $330,000 $350,000, $340,000, and $360,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the…arrow_forward2arrow_forward
- Please solve all 4 requirementsarrow_forwardMillen Corporation is a merchandiser that is preparing a master budget for the month of July. The company’s balance sheet as of June 30th is shown below: Millen Corporation Balance Sheet June 30 Assets Cash $ 120,000 Accounts receivable 166,000 Inventory 37,200 Plant and equipment, net of depreciation 554,800 Total assets $ 878,000 Liabilities and Stockholders’ Equity Accounts payable $ 93,000 Common stock 586,000 Retained earnings 199,000 Total liabilities and stockholders’ equity $ 878,000 Millen’s managers have made the following additional assumptions and estimates: Estimated sales for July and August are $310,000 and $330,000, respectively. Each month’s sales are 20% cash sales and 80% credit sales. Each month’s credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. Each month’s ending inventory must equal 20% of…arrow_forwardIn September 2019, the budget committee of Jason Company assembles the following data: 1. 2 Expected Sales 4. October November December Cost of goods sold is expected to be 60% of sales. 3. Desired ending merchandise inventory is 20% of the next month's cost of goods sold. The beginning inventory at October 1 will be the desired amount. $1,800,000 1,700,000 V 1,600,000 Prepare the budgeted income statement for October through gross profit on sales, including a cost of goods sold schedule. V M JASON COMPANY Budgeted Income Statement For the Month Ended October 31, 2019 $ $arrow_forward
- The income statement for the first quarter of 2019 was as follows: Income Statement For the Quarter Ended March 31, 2019 Sales Cost of goods sold Gross profit Operating expenses ales salaries Rent expense Depreciation Utilities Miscellaneous Total operating expenses Net income $52,000 24,000 12,000 3,600 12,800 $720,000 396,000 324,000 104,400 $219,600 Prepare a budgeted quarterly income statement in tabular form for the first quarter of 2020.arrow_forwardMonth ($) Wages ($) From the following information, prepare a monthly cash budget for the three months ending 31st December 2019. Sales ($) Materials Other Expenses ($) Jun. (A) 3,000 1,800 650 385 Jul. (A) 3,250 2,000 750 385 Aug. (A) 3,500 2,400 750 425 Sep.(A) 3,750 2,250 .750 475 Oct. (E) 4,000 2,300 800 500 Nov. (E) 4,250 2,500 900 550 Dec. (E) 4,500 2,600 1,000 575 (A) Actual; (E) - Estimated. = The credit terms are as follows: • Sales -10% of sales are in cash. On average, 50% of credit sales are paid in the next month, while the other 50% are paid two months after the sale. • Creditors for material are paid 2 months after purchase. • Wages and other expenses are paid the same month. The cash and bank balance on 1st October is expected to be $1,500. Other information is given as follows: • Plant and machinery are to be installed in August at a cost of $24,000. This sum will be paid in monthly installments of $500 each from 1st October. • Dividends from investments amounting to…arrow_forwardBravo Company is a bookstore that prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the first quarter: As of December 31, 2023 (the end of the prior quarter), the company’s general ledger showed the following account balances: Debit Credit Cash 44,000 Accounts Receivable 184,000 Inventory 60,000 Building & Equipment 404,000 Accumulated Depreciation 144,000 Accounts Payable 93,000 Capital shares 200,000 Retained Earnings 255,000 Totals $ 692,000 $ 692,000 Actual sales for December and budgeted…arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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