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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 14-2LESSON 14-2
Budgeted Income Statement
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
LESSON 14-2
1. Enter actual and projected units.
2. Determine sales percentages.
6. Calculate total net sales.
3. Calculate unit sales volume.
4. Enter unit sales prices.
5. Calculate projected net sales.
SALES BUDGET SCHEDULESALES BUDGET SCHEDULE page 419
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
1. Calculate ending inventory for each quarter.
2. Enter projected unit sales.
3. Determine total units needed.
4. Enter beginning inventory.
6. Enter unit cost.
5. Determine purchases.
7. Determine cost of purchases.
PURCHASES BUDGET SCHEDULEPURCHASES BUDGET SCHEDULE page 420
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
SELLING EXPENSES SELLING EXPENSES BUDGET SCHEDULEBUDGET SCHEDULE page 421
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
ADMINISTRATIVE EXPENSESADMINISTRATIVE EXPENSESBUDGET SCHEDULEBUDGET SCHEDULE page 423
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
OTHER REVENUE AND EXPENSES OTHER REVENUE AND EXPENSES BUDGET SCHEDULEBUDGET SCHEDULE page 424
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
1. Beginning inventory: 39,200 units $3.30 = $129,360
2. Ending inventory: 42,100 units $3.40 = $143,140
BUDGETED INCOME STATEMENTBUDGETED INCOME STATEMENT page 425
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
Net Income before Federal Income Tax
Tax Rate =Federal IncomeTax Expense
15% of net income before taxes, zero to $50,000.00.
25% of net income before taxes less $5,000.00, $50,001.00 to $75,000.00.
34% of net income before taxes less $11,750.00, $75,001.00 to $100,000.00.
39% of net income before taxes less $16,750.00, $100,001.00 to $335,000.00.
CALCULATING FEDERAL CALCULATING FEDERAL INCOME TAX EXPENSEINCOME TAX EXPENSE page 425
Calculating Federal Income Tax Expense
$125,970 39% less $16,750 = $32,378.30rounded to $32,380
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 14-2
TERMS REVIEWTERMS REVIEW
sales budget schedule purchases budget schedule selling expenses budget schedule administrative expenses budget schedule other revenue and expenses budget schedule budgeted income statement
page 426