Russell Company Has the Following Projected Account Balances for June

Essay

Russell Company has the following projected account balances for June 30,2015:
$\begin{array}{lrlr}\text { Accounts payable } & \$ 80,000 & \text { Sales } & \$ 1,600,000 \\\text { Accounts receivable } & 200,000 & \text { Capital stock } & 800,000 \\\text { Depreciation, factory } & 48,000 & \text { Retained earnings } & ?\\\text { Inventories }(5 / 31 \& 6 / 30) & 360,000 & \text { Cash } & 112,000 \\\text { Direct materials used } & 400,000 & \text { Equipment, net } & 480,000 \\\text { Office salaries } & 160,000 & \text { Buildings, net } & 800,000\\\text { Insurance, factory } & 8,000 & \text { Utilities, factory } & 32,000 \\\text { Plant wages } & 280,000 & \text { Selling expenses } & 120,000 \\\text { Bonds payable } & 320,000 & \text { Maintenance, factory } & 56,000\end{array}$ Required:
a.Prepare a budgeted income statement for June 2015
b.Prepare a budgeted balance sheet as of June 30,2015.