Financial Managerial Accounting: E22-30 Goldstein, Inc. has the following balance sheet

Financial Managerial Accounting
E22-30 Preparing the financial budget - budgeted balance sheet
Goldstein, Inc. has the following balance sheet at December 31, 2014:
Goldstein, Inc.
Balance Sheet
December 31, 2014
Assets
Current Assets:
Cash 2,500
Accounts Receivable 1,000
Raw Materials Inventory 500
Finished Goods Inventory 1,250
Total Current Assets 5,250
Property, Plant and Equipment;
Equipment 10,000
Less: Accumulated Depreciation (2,000) 8,000
Total Assets $13,250
Current Liabilities:
Accounts Payable 1,500
Stockholders' Equity
Common Stock, no par 8,000
Retained Earnings 3,750
Total Stockholders' Equity 11,750
Total Liabilities and Stockholders' Equity $13,250

Goldstein projects the following transactions for 2015:
Sales on account, $20,000
Cash receipts from customers from sales on account, $18,500
Purchase of raw materials on account, $6,000
Payments on account, $6,500

Total cost of completed products, $16,000, which includes the following:
Raw materials used, $6,200
Direct labor costs incurred and paid, $4,500
Manufacturing overhead costs incurred and paid, $4,800
Depreciation on manufacturing equipment, $500
Cost of goods sold, $16,500
Selling and administrative costs incurred and paid, $3,000
Purchase of equipment, paid in 2015, $2,000

Prepare a budgeted balance sheet for Goldstein, Inc. for December 31, 2015.
Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.
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