ACC 206 Week 5 Chapter 22 E 22-19

This file contains ACC 206 Week 5 Chapter 22 E 22-19

E22-19 Preparing a financial budget [25–30 min]

Consider the following June actual ending balances and July 31, 2012, budgeted amounts for Oleans.com:

a. June 30 inventory balance, $17,750

b. July payments for inventory, $4,300

c. July payments of accounts payable and accrued liabilities, $8,200

d. June 30 accounts payable balance, $10,600

e. June 30 furniture and fixtures balance, $34,500; accumulated depreciation balance, $29,830

f. June 30 equity, $28,360

g. July depreciation expense, $900

h. Cost of goods sold, 50% of sales

i. Other July expenses, including income tax, total $6,000, paid in cash

j. June 30 cash balance, $11,400

k. July budgeted credit sales, $12,700

l. June 30 accounts receivable balance, $5,140

m. July cash receipts, $14,200

Requirement

1. Prepare a budgeted balance sheet.