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Master Budget Income Statement

Russell Company has the following projected account balances for June 3O, 19x1:

Accounts payable___________________$40,000

Accounts receivable________________100,000

Depreciation, factory_______________24,000

Inventories (5/31 & 6/30)__________180,000

Direct materials used______________200,000

Office salaries_____________________80,000

Insurance, factory___________________4,000

Plant wages________________________140,000

Bonds payable______________________160,000

Sales______________________________800.000

Capital stock______________________400,000

Retained earnings________________________?

Cash________________________________56,000

Equipment, net_____________________240,000

Buildings, net_____________________400,000

Utilities, factory__________________16,000

Selling expenses____________________60,000

Maintenance, factory________________28,000

Prepare a budget income statement for June 19x1.

Solution Preview

92. a. Russell Company
<br> Income Statement
<br> for the month of June 19x1
<br>
<br> Sales $800,000
<br> ...

$2.19