Lumberton Company Has the Following Projected Account Balances for June

Essay

Lumberton Company has the following projected account balances for June 30, 2018: $$\begin{array} { l r l r } \text { Accounts payable } & \$ 20,000 & \text { Sales } & \$ 400,000 \\\text { Accounts receivable } & 50,000 & \text { Capital stock } & 200,000 \\\text { Depreciation, factory } & 12,000 & \text { Retained earnings } & ? ? ? ? \\\text { Inventories } ( 5 / 31 ) & 90,000 & \text { Maintenance, factory } & 14,000 \\\text { Inventories } ( 6 / 30 ) & 90,000 & \text { Cash } & 28,000 \\\text { Materials used } & 100,000 & \text { Equipment, net } & 120,000 \\\text { Office expenses } & 40,000 & \text { Buildings, net } & 200,000 \\\text { Insurance, factory } & 2,000 & \text { Utilities, factory } & 8,000 \\\text { Factory wages } & 70,000 & \text { Selling expenses } & 30,000 \\\text { Bonds payable } & 80,000 & &\end{array}$$ Required:
a.Prepare a budgeted income statement for June 2018.
b.Prepare a budgeted balance sheet as of June 30, 2018.