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Question: p2244a preparing a financial budgetbudgeted income statement and balance sheet...

Question details

P22-44A Preparing a financial budget—budgeted income statement and balance sheet

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

BALL COMPANY Post-Closing Trial Balance December 31, 2018 Debit Account Cash Accounts Receivable Merchandise Inventory Prepai

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

Budgeted total sales, all on account Budgeted purchases of merchandise inventory, all on account Budgeted cost of goods sold

Additional information:

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

of the prepaid amount.

Requirements

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

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

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