The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:

The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:

	Ending Balances
Cash		?
Accounts receivable	$	10,100
Supplies inventory	$	4,600
Equipment	$	44,000
Accumulated depreciation	$	17,800
Accounts payable	$	3,800
Common stock	$	5,000
Retained earnings		?

 

The beginning balance of retained earnings was $37,000, net income is budgeted to be $21,700, and dividends are budgeted to be $4,300.

Required:

Prepare the company’s budgeted balance sheet.

Explanation

Cash = Plug figure.

Retained earnings is computed as follows:

Retained earnings, beginning balance	$	37,000
Add net income		21,700
		58,700
Deduct dividends		4,300
Retained earnings, ending balance	$	54,400

Thanks