Reference no: EM131787556
Problem - Master Budget
Techlabs operates a computer training center. The following data relate to the preparation of a master budget for January 2012.
1. At the end of 2011, the company's general ledger indicated the following balances:
|
Debits
|
|
Credits
|
|
Cash
|
$43,000
|
|
Accounts Payable
|
$38,000
|
|
Accounts receivable
|
35,000
|
|
Note payable
|
67,000
|
|
Equipment (net)
|
115,000
|
|
Common stock
|
24,000
|
|
|
|
Retained earnings
|
64,000
|
|
Total
|
$193,000
|
|
|
$193,000
|
2. Tuition revenue in December 2011 was $70,000, and tuition revenue budgeted for January 2012 is $100,000.
3. 50 percent of tuition revenue is collected in the month earned, and 50 percent is collected in the subsequent month. The receivable balance at the end of 2012 reflects tuition earned in December 2012.
4. Monthly expenses (excluding interest expense) are budgeted as follows: salaries, $36,000; rent, $5,400; depreciation on equipment, $7,000; utilities, $1,000; other, $1,900.
5. Expenses are paid in the month incurred. Purchases of equipment are paid in the month after purchase. The $38,000 payable at the end of 2011 represents money owed for the purchase of computer equipment in December 2011.
6. The company intends to purchase $36,000 of computer equipment in January 2012. The anticipated $7,000 per month of depreciation (see number 4) reflects the addition of $1,000 of monthly depreciation related to this purchase.
7. The note is at 10 percent per annum and requires monthly interest payments of $558. The payments are made on the 20th of each month.The principal must be paid in February of 2013.
8. The tax rate is 35 percent.
Complete the following budget:
- Budgeted Cash Receipts and Disbursements For January 2012
- Budgeted Income Statement For January 2012
- Budgeted Balance Sheet As of January 2012.
|
Discuss the rationale for using the allowance method
: On July 1, 2010, Wallace Company, Discuss the rationale for using the allowance method based on credit sales to estimate bad debts
|
|
Solved by using permutations or combinations
: Determine whether each of the following counting problems can be solved by using permutations or combinations, and answer each question.
|
|
International management experts contend that globalization
: Some international management experts contend that globalization and national responsiveness are completely opposed forces,
|
|
Calculate the monthly insurance premium
: Write an algorithm in structured English (pseudocode) that describes the steps required to perform the task specified - ource code for your Python implementatio
|
|
Complete the budgeted income statement for january
: Tuition revenue in December 2011 was $70,000, and tuition revenue budgeted for January 2012 is $100,000. Complete the Budgeted Income Statement For January
|
|
What is the budgeted production for 2012
: Crow Manufacturers, Inc. projected sales of 62,217 bicycles for 2012. The estimated January 1, 2012, inventory is 6,313 units, and the desired December
|
|
Convict a couple of mugging an elderly woman
: Crime in an actual case,* probability was used to convict a couple of mugging an elderly woman. Shortly after the mugging, a young, white woman
|
|
Compute the costs of carrying inventory
: Global Services is considering a promotional campaign that will increase annual credit sales by $400,000. The company will require investments in accounts.
|
|
Probability that another couple
: He multiplied these probabilities and concluded that the probability that another couple would have these characteristics is 1/12,000,000.
|