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Budgeted income statement and balance sheet

As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January $1,20$Y$9,$ the following tentative trial balance as of December $31,20$Y$8,$ is prepared by the Accounting Department of Regina Soap Co$.$:

Account TitleDebit BalanceCredit BalanceCash$$85,000$Accounts Receivable$125,600$Finished Goods$69,300$Work in Process$32,500$Materials$48,900$Prepaid Expenses$2,600$Plant and Equipment$325,000$Accumulated Depreciation$$Plant and Equipment$$$$156,200$Accounts Payable$62,000$Common Stock, $$10$ par$180,000$Retained Earnings$290,700$Total$$688,900$$$688,900$

Factory output and sales for $20$Y$9$ are expected to total $200,000$ units of product, which are to be sold at $$5\mathrm{.}00$ per unit. The quantities and costs of the inventories at December $31,20$Y$9,$ are expected to remain unchanged from the balances at the beginning of the year.

Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:

Estimated Costs and Expenses$$Line Item Description$$Fixed

$($Total for Year$)$Variable

$($Per Unit Sold$)$Cost of goods manufactured and sold:$$Direct materials$\_$$$1\mathrm{.}10$Direct labor$\_0\mathrm{.}65$Factory overhead:$$Depreciation of plant and equipment$$40,000\_$Other factory overhead$12,0000\mathrm{.}40$Selling expenses:$$Sales salaries and commissions$46,0000\mathrm{.}45$Advertising$64,000\_$Miscellaneous selling expense$6,0000\mathrm{.}25$Administrative expenses:$$Office and officers salaries$72,4000\mathrm{.}12$Supplies$5,0000\mathrm{.}10$Miscellaneous administrative expense$4,0000\mathrm{.}05$

Factory output and sales for $20$ Y $9$ are expected to total $200,000$ units of product, which are to be sold at $\backslash (\backslash$$ $5\mathrm{.}00\backslash )$ per unit. The quantities and costs of the inventories at December $31,20$Y$9,$ are expected to remain unchanged from the balances at the beginning of the year.

Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:

Estimated Costs and Expenses

Chapter $22$ Homework assignment take frame

Fixed

Variable

$($Total for Year$)$

$($Per Unit Sold$)$

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances.

Federal income tax of $\backslash (\backslash$$ $30,000\backslash )$ on $20$ Y $9$ taxable income will be paid during $20$ Yg $.$ Regular quarterly cash dividends of $\backslash (\backslash$$ $0\mathrm{.}15\backslash )$ per share are expected to be declared and paid in March, June, September, and December on $18,000$ shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $\backslash (\backslash$$ $75,000\backslash )$ cash in May. cash in May.

Required:

Chapter $22$ Homework assignment take frame

$1.$ Prepare a budgeted income statement for $20$ Y $9.$

Regina Soap Co$.$

Budgeted Income Statement

For the Year Ending December $31,20$ Y $9$

Regina Soap Co$.$

Budgeted Balance Sheet

December $31,20$ Yg

Chapter $22$ Homework assignment take frame

Current assets:

Inventories:

Total current assets

Property, plant, and equipment:

Total property, plant, and equipment

Total assets

Liabilities

Current liabilities:

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