Step by step instructions would be greatly appreciated for P22-49B in Hongren's Accounting 12th edition.

Ballentine Company has the following post-closing trial balance on 12/31/2018. (See Post-Closing Trial Balance)

The company's accounting department has gathered the following budgeting information for the first quarter of 2019: (see Budgeting Information)

1. Prepare Ballentine Company's budget income statement for the first quarter of 2019.

2. Prepare Ballentine Company's budgeted balance sheet as of 03/31/2019.

Additional Information:

a. Direct materials purchases are paid 50% in the quarter purchased and 50% in the next quarter.

b. Direct labor, ma following budgeted income statement nufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred.

c. Accounts Payable at 12/31/2018 are paid in the first quarter of 2019.

Post Closing Trial Balance 12/31/2018

Account	Debit	Credit
Cash	45000
Accounts Rec.	17900
Raw Mat. Inven.	7000
Finished Goods Inv.	25900
Equipment	120000
Accum. Depreciation		20000
Accounts Payable		17300
Common Stock		85000
Retained Earnings		93500
Totals	215800	215800