Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun. depreciation-Equipment $ 64,900 Be,870 290,656 1,310 437,736 147,500 (41,625) $ 543,611 $ 83,500 60,625 261, Be0 2,095 408,020 118,000 (51,000) $ 475,020 Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities $ 63,141 13,000 76,141 6e,000 136,141 $ 129,675 8,e00 137,675 58,750 196,425 Equity Connon stock, $5 par value Paid-in capital in excess of par, connon stock Retained earnings Total liabilities and equity 177,750 52,500 177, 220 $ 543,611 160, 250 118,345 $ 475,020 FORTEN COMPANY Incone Statement For Current Year Ended Decenber 31 $ 632,500 295,000 337,500 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Other gains (losses) Loss on sale of equipment Income before taxes $ 30,750 142,400 173,150 (15,125) 149,225 38,250 $ 110,975 Income taxes expense Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $15,125 (detalls in b). b. Sold equipment costing $76,875. with accumulated depreciation of $40125, for $21,625 cash. c. Purchased equlpment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Pald $55,125 cash to reduce the long-term notes payable. f. Issued 3,500 shares of common stock for $20 cash per share. g. Declared and pald cash dividends of $52,100.
Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun. depreciation-Equipment $ 64,900 Be,870 290,656 1,310 437,736 147,500 (41,625) $ 543,611 $ 83,500 60,625 261, Be0 2,095 408,020 118,000 (51,000) $ 475,020 Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities $ 63,141 13,000 76,141 6e,000 136,141 $ 129,675 8,e00 137,675 58,750 196,425 Equity Connon stock, $5 par value Paid-in capital in excess of par, connon stock Retained earnings Total liabilities and equity 177,750 52,500 177, 220 $ 543,611 160, 250 118,345 $ 475,020 FORTEN COMPANY Incone Statement For Current Year Ended Decenber 31 $ 632,500 295,000 337,500 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Other gains (losses) Loss on sale of equipment Income before taxes $ 30,750 142,400 173,150 (15,125) 149,225 38,250 $ 110,975 Income taxes expense Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $15,125 (detalls in b). b. Sold equipment costing $76,875. with accumulated depreciation of $40125, for $21,625 cash. c. Purchased equlpment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Pald $55,125 cash to reduce the long-term notes payable. f. Issued 3,500 shares of common stock for $20 cash per share. g. Declared and pald cash dividends of $52,100.
Chapter1: Financial Statements And Business Decisions
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