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Acc206: Principles of Accounting 11

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CLASS ACC206: PRINCIPLES OF ACCOUNTING 11
WEEK 4: WEEK FIVE PROBLEMS
PROFESSOR: ANGELA SNEED
DATE: 07/05/2012.
Week Five Problems
Chapter 22, E 22-19
Chapter 22, P 22-22A
Chapter 23, P 23-28A
E22-19 Preparing a financial budget
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.

E 22-19

Requisition. 1

| Cash + | Accounts receivable+ | Inventory+ | Furniture+ | (Accum. Deprec.) | = | Accounts payable + | Stockholders’ equity | June 30 balance | J)$11,400 | l)$5,140 | A)$17,750 | E)$34,500 | E)$(29,830) | = | D)$10,600 | F)$28,360 | Payments for inventory | B)(4,300) | | 4,300 | | | = | | | Payments on account | (8,200) | | | | | = | C)(8,200) | | Depreciation | | | | | G)(900) | = | | (900) | Cost of goods sold | | | H)(6,350)* | | | = | | (6,350) | Other expenses | I)(6,000) | | | | | = | | (6,000) | Sales on credit | | K)12,700 | | | | = | | 12,700 | Cash receipts | (M)14,200 | M)(14,200) | ______ | ______ | ______ | = | ______ | _______ | July 31 balance | $7,100 | $3,640 | $15,700 | $34,500 | $(30,730) | = | $2,400 + | $27,810 |

*$12,700 x

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