Ball Company has the following post-closing trial balance on December 31, 2018:
BALL COMPANY
Post-Closing Trial Balance
December 31, 2018

The company's accounting department has gathered the following budgeting information for the first quarter of 2019:
Budgeted total sales, all on account ............................................ $ 121,800
Budgeted purchases of merchandise inventory, all on account ................. 60,400
Budgeted cost of goods sold ........................................................ 60,900
Budgeted selling and administrative expenses:
Commissions expense ............................................................... 6,090
Salaries expense ....................................................................... 7,000
Rent expense ........................................................................... 4,100
Depreciation expense ..................................................................... 600
Insurance expense ......................................................................... 400
Budgeted cash receipts from customers .......................................... 125,840
Budgeted cash payments for merchandise inventory ............................ 67,775
Budgeted cash payments for salaries and commissions ......................... 14,822
Budgeted income tax expense ........................................................ 5,400
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?

Transcribed Image Text:

Credit Account Debit $ 23,000 Cash Accounts Receivable 32,000 Merchandise Inventory 15,500 Prepaid Insurance 2,400 60,000 Equipment and Fixtures $ 10,000 Accumulated Depreciation Accounts Payable 24,000 Salaries and Commissions Payable 6,600 Common Stock 18,000 Retained Earnings 74,300 $ 132,900 $ 132,900 Totals