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Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given below:
The June 30th balance sheet follows:
Cash P 25,000
Accounts payable P 45,000
Accounts receivable 110,000
Capital stock 300,000
Inventory 54,000
Retained earnings 94,000
Building and equipment (net) 250,000
Actual sales for June and budgeted sales for July, August, and September are given below:
June P137,500
July 360,000
August 400,000
September 320,000
Question 1: What is the balance of the retained earnings account at the end of July?
a. P94,000
b. P188,000
c. P360,000
d. P398,000
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