Reference no: EM132468294

Problem 1: Preparing a financial budget-budgeted income statement and balance sheet

Ball Company has the following post-closing trial balance on December 31, 2018

The company's accounting department has gathered the following budgeting information for the first quarter of 2019:

Budgeted total sales, all on account                                            121,800

Budgeted purchases of merchandise inventory, all on account         60,400

Budgeted cost of goods sold                                                       60,900

Budgeted selling and administrative expenses:

Commissions expense                                                                                     6,090

Salaries expense                                                                                              7,000

Rent expense                                                                                                  4,100

Depreciation expense                                                                                         600

Insurance expense                                                                                             400

Budgeted cash receipts from customers                                       125,840

Budgeted cash payments for merchandise inventory                       67,775

Budgeted cash payments for salaries and commissions                    14,822

Budgeted income tax expense                                                        5,400

Additional information: Rent and income tax expenses are paid as incurred. Insurance expense is an expiration

of the prepaid amount.

Requirements

Question 1. Prepare a budgeted income statement for the quarter ended March 31 , 2019.

Question 2. Prepare a budgeted balance sheet as of March 31, 2019.