80.2K

Verified Solution

Link Copied!

arah, the sole stockholder of Marshall Inc., runs a home-cleaning service in the suburb of a large city. Her balance sheet as at December 31, 2019 is as follows:

Marshall Inc. Balance Sheet As at December 31, 2019
Assets
Cash	$5,000
Accounts Receivable	$20,000
Equipment	$9,500
Accumulated Depreciation	$-2,800
Total Assets	$31,700
Liabilities
Accounts Payable	$4,400
Notes Payable	$13,000
Total Liabilities	$17,400
Stockholder's Equity	$14,300
Total Liabilities & Stockholder's Equity	$31,700

In the upcoming year, Sarah expects the following events to occur:

• Total revenues of $28,000 and total expenses of $15,900
• 100% of accounts receivable from the prior year will be collected in the following year
• Credit sales will represent 46% of revenues for the year
• 100% of accounts payable owing from 2019 will be paid off in 2020
• By the end of December, 2020, Marshall will owe its suppliers $3,900
• No principal payments will be made on the bank loan during 2019
• Purchase of new equipment for $1,300. The entire purchase will be financed through a bank loan
• Expect to have a cash balance of $24,500 at the end of fiscal 2020
• Depreciate assets by $780 during 2020

Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values. Prepare Marshall Inc.'s budgeted balance sheet as at December 31, 2020.

Marshall Inc. Budgeted Balance Sheet As at December 31, 2020
Assets
Cash	$Answer
Accounts Receivable	$Answer
Equipment	$Answer
Accumulated Depreciation	$Answer
Total Assets	$Answer
Liabilities
Accounts Payable	$Answer
Notes Payable	$Answer
Total Liabilities	$Answer
Stockholder's Equity	$Answer
Total Liabilities & Stockholder's Equity	$Answer

Answer & Explanation Solved by verified expert

See Answer