49) Managerial Financial Accounting Assignments AP10-3 Solution

49) Managerial Financial Accounting Assignments AP10-3 Solution

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AP10-3
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Master Budget [LO 2] Techlabs operates a computer training center. The following data relate to the preparation of a master budget for January 2012. 1. At the end of 2011, the company’s general ledger indicated the following balances: Debits Credits Cash $45,000 Accounts Payable $36,000 Accounts receivable 40,500 Note payable 61,000 Equipment (net) 118,000 Common stock 38,000 Retained earnings 68,500 Total $203,500 $203,500 2. Tuition revenue in December 2011 was $81,000, and tuition revenue budgeted for January 2012 is $100,000. 3. 50 percent of tuition revenue is collected in the month earned, and 50 percent is collected in the subsequent month. The receivable balance at the end of 2012 reflects tuition earned in December 2012. 4. Monthly expenses (excluding interest expense) are budgeted as follows: salaries, $50,000; rent, $4,800; depreciation on equipment, $7,000; utilities, $1,000; other, $1,900. 5.
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This note was uploaded on 08/02/2011 for the course MGMT 425 taught by Professor Brown/lexner during the Spring '11 term at Kaplan University.

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49) Managerial Financial Accounting Assignments AP10-3 Solution

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