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a. The loss on the cash sale of equipment was $5125(details in b). b.Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. The Statement of cash flows is not complete can you please fill in the blanks and correct the two marked wrong? thank you c. Purchased equipment costing $96,375 By paying $30,000 cash and signing a lon-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100.

a. The loss on the cash sale of equipment was $5125(details in b). b.Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. The Statement of cash flows is not complete can you please fill in the blanks and correct the two marked wrong? thank you c. Purchased equipment costing $96,375 By paying $30,000 cash and signing a lon-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. The loss on the cash sale of equipment was $5125(details in b).

b.Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.

The Statement of cash flows is not complete can you please fill in the blanks and correct the two marked wrong? thank you

c. Purchased equipment costing $96,375 By paying $30,000 cash and signing a lon-term notes payable for the balance.

d. Paid $46,125 cash to reduce the long-term notes payable.

e. Issued 2,500 shares of common stock for $20 cash per share.

f. Declared and paid cash dividends of $50,100.

Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory. Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash FORTEN COMPANY Income Statement For Current Year Ended December 31 Accounts receivable Inventory Prepaid expenses Total current assets FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities $ 132,400 20,750 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 582,500 285,000 297,500 153, 150 (5,125) 139,225 24,250 $ 114,975 Current Year $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $ 513,391 $ 53,141 75,000 128,141 162,750 37,500 185,000 $ 513,391 Prior Year $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $ 439,800 $ 114,675 54,750 169,425 150, 250 0 120, 125 $ 439,800
Transcribed Image Text:Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory. Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash FORTEN COMPANY Income Statement For Current Year Ended December 31 Accounts receivable Inventory Prepaid expenses Total current assets FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities $ 132,400 20,750 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 582,500 285,000 297,500 153, 150 (5,125) 139,225 24,250 $ 114,975 Current Year $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $ 513,391 $ 53,141 75,000 128,141 162,750 37,500 185,000 $ 513,391 Prior Year $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $ 439,800 $ 114,675 54,750 169,425 150, 250 0 120, 125 $ 439,800
FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Loss on disposal of equipment Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash paid for dividends Cash received from issuing stock Cash paid on long-term notes Net increase (decrease) in cash Cash balance at December 31, prior year $ 114,975 20,750 5,125 (15,185) (23,856) 625 (61,534) (30,000) 50,100 185,000 X (46,125) 40,900 (30,000) 188,975 $ 199,875
Transcribed Image Text:FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Loss on disposal of equipment Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash paid for dividends Cash received from issuing stock Cash paid on long-term notes Net increase (decrease) in cash Cash balance at December 31, prior year $ 114,975 20,750 5,125 (15,185) (23,856) 625 (61,534) (30,000) 50,100 185,000 X (46,125) 40,900 (30,000) 188,975 $ 199,875
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