Dorah, the sole stockholder of Barnie Inc., runs a home-cleaning service in the suburb of...
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Accounting
Dorah, the sole stockholder of Barnie Inc., runs a home-cleaning service in the suburb of a large city. Her balance sheet as at January 31, 2019 is as follows:
Barnie Inc.Balance SheetAs at January 31, 2019
Assets
Cash
$4,600
Accounts Receivable
$15,300
Equipment
$9,000
Accumulated Depreciation
$-2,400
Total Assets
$26,500
Liabilities
Accounts Payable
$2,400
Notes Payable
$12,100
Total Liabilities
$14,500
Stockholder's Equity
$12,000
Total Liabilities & Stockholder's Equity
$26,500
In the upcoming year, Dorah expects the following events to occur:
Total revenues of $26,000 and total expenses of $16,800
100% of accounts receivable from the prior year will be collected in the following year
Credit sales will represent 40% of revenues for the year
100% of accounts payable owing from 2019 will be paid off in 2020
By the end of January, 2020, Barnie will owe its suppliers $3,700
No principal payments will be made on the bank loan during 2019
Purchase of new equipment for $1,500. The entire purchase will be financed through a bank loan
Expect to have a cash balance of $20,600 at the end of fiscal 2020
Depreciate assets by $600 during 2020
Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values. Prepare Barnie Inc.'s budgeted balance sheet as at January 31, 2020.
Barnie Inc.Budgeted Balance SheetAs at January 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
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