Income Statement and Balance Sheet
Laura Golarsa’s Asset and Liabilities as at June 30 are outlined in the post-closing trial balance below.
|Cash at Bank||$2,700.00|
|Inventory (at cost)||$4,000.00|
|Plant & Equipment||$6,600.00|
|Accumulated Depreciation: Plant & Equipment||$2,640.00|
|Accumulated Depreciation: Motor Vehicles||$4,500.00|
|Land & Buildings||$225,000.00|
|Accrued Expenses Payable||$530.00|
|Capital: Laura Golarsa||$200,000.00|
- Laura Golarsa estimates that her sales for the next three months will be as follows:
Selling price is firmly established a cost plus 75% Markup, with 80% of sales on credit.
- Actual and estimated inventory balances are as follows:
|June 30 (actual)||$4,000|
|July 31 (estimated)||$5,000|
|August 31 (estimated)||$6,500|
- All purchases are made for cash and take advantage of 2.5% trade discount.
- Some Cash Expenses are:
|Marketing||10% of Sales|
|General & Administration||5.5% of Sales|
- At 1 July, accrued motor vehicle running expenses payable amounted to $530. These expenses are $250 plus 2% of sales and are paid in the following month. At the end of the quarter, September’s motor vehicle running expenses will be accrued.
- Motor Vehicles are depreciated at 20% per annum and Plant & Equipment at 10% per annum.
- Financial Expenses: Interest payable is $1,850 per quarter. Additionally, 2.5% of credit sales are expected to be bad.
Laura forecasts that the following will occur during the quarter ending September 30:
- Laura estimates that she will collect all of the accounts receivable at 30/06, and 80% of the collectible Accounts Receivable arising from the quarter’s sales.
- $15000 will be paid off the bank loan.
- Laura will deposit additional capital of $25,000 during the period.
Required (Ignoring VAT for this question)
- Prepare a Budgeted Income Statement for the quarter ended 30 September, based on the information provided, clearly showing all component of Cost of Goods Sold.
- Prepare a Budgeted Balance Sheet as at 30 September.
Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).
After making payment, solution is available instantly.Solution is available either in Word or Excel format unless otherwise specified.
If your question is slightly different from the above question, please contact us at firstname.lastname@example.org with your version of question.