Use the following information to prepare a budgeted balance sheet for Grover Company for the month of June.a. The budgeted net income for the month of June is $236,000.b. The beginning cash balance is $62,000; total budgeted cash receipts are $1,660,000; total budgeted cash payments are $1,580,000.c. Budgeted sales for June are $1,700,000. Collections are 40% in the month of sale and 60% in the month following.d. The projected inventory balance is 10% of the following month's sales. Sales for July are projected to be $1,750,000.e. Budgeted purchases for June are $900,000 to be paid 80% in the month of purchase and 20% in the month following.f. The equipment account balance is $1,400,000 on May 31. No equipment purchases or disposals will be made during June. On May 31, the accumulated
depreciation is $276,000. Depreciation expense for June is estimated to be $24,000.g. An outstanding loan balance of $800,000 is expected at the end of June.h. Accrued income taxes payable for June 30 are expected to be $71,000. Salaries payable for June 30 are expected to be $50,000.i. The only other balance sheet accounts are: Common Stock, with a balance of $800,000 on May 31, and Retained Earnings with a balance of $300,000 on May 31. No additional common stock will be issued and no dividends will be paid during June.
What will be an ideal response?
| Grover Company Budgeted Balance Sheet June 30 | ||
| Assets | ? | ? |
| Cash ………………………………………….. | ? | $142,000 |
| Accounts receivable …………………………. | ? | 1,020,000 |
| Merchandise inventory ………………………. | ? | 175,000 |
| Total current assets ………………………….. | ? | 1,337,000 |
| Equipment …………………………………… | $1,400,000 | ? |
| Less accumulated depreciation ……………… | 300,000 | 1,100,000 |
| Total assets …………………………………... | ? | $2,437,000 |
| Liabilities and Equity | ? | ? |
| Liabilities | ? | ? |
| Accounts payable ………………………….. | $180,000 | ? |
| Salaries payable …………………………… | 50,000 | ? |
| Income taxes payable ……………………… | 71,000 | ? |
| Total current liabilities ………………………. | 301,000 | ? |
| Bank loan payable …………………………. | 800,000 | $1,101,000 |
| Stockholder's Equity ………………………… | ? | ? |
| Common stock …………………………….. | 800,000 | ? |
| Retained earnings ($300,000 + $236,000) … | 536,000 | 1,336,000 |
| Total liabilities and equity …………………… | ? | $2,437,000 |
Accounts receivable balance = $1,700,000 ? 60% = $1,020,000
Merchandise inventory balance = $1,750,000 ? 10% = $175,000
Accumulated depreciation = $276,000 + $24,000 = $300,000
Accounts payable balance = $900,000 ? 20% = $180,000
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