Johnson Company Has the Following Projected Account Balances for September

question 111

Essay

Johnson Company has the following projected account balances for September 30:
$\begin{array}{lrlr}\text { Accounts payable } & \$ 20,000 & \text { Sales } & \$ 400,000 \\\text { Accounts receivable } & 50,000 & \text { Capital stock } & 200,000 \\\text { Depreciation, factory } & 12,000 & \text { Retained earnings } & ? ? ? \\\text { Inventories }(8 / 31) & 90,000 & \text { Maintenance, factory } & 14,000 \\\text { Inventories }(9 / 30) & 90,000 & \text { Cash } & 28,000 \\\text { Materials used } & 100,000 & \text { Equipment, net } & 120,000 \\\text { Office expenses } & 40,000 & \text { Buildings, net } & 200,000 \\\text { Insurance, factory } & 2,000 & \text { Utilities, factory } & 8,000 \\\text { Factory wages } & 70,000 & \text { Selling expenses } & 30,000 \\\text { Bonds payable } & 80,000 & &\end{array}$

a.Prepare a budgeted income statement for September.
b.Prepare a budgeted balance sheet as of September 30.

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Definitions:

Tripled

Increased threefold or three times in quantity or value.

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