AssetsCashFORTEN COMPANYComparative Balance SheetsDecember 31Current Year$ 49,80065,810275,656Prior Year$ 73,50050,625251,800Accounts receivableInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableShort-term notes payableTotal current liabilitiesLong-term notes payableTotal liabilitiesEquityCommon stock, $5 par valuePaid-in capital in excess of par, common stockRetained earningsTotal liabilities and equity1,250392,516157,5001,875377,800108,000(46,000)(36,625)$ 513,391$ 53,14110,00063,141$ 439,800$ 114,6756,000120,67565,00048,750128,141169,425162,750150,250120,125,391$ 439,80037,500185,000$ 513,5FORTEN COMPANYIncome StatementFor Current Year Ended December 31SalesCost of goods soldGross profitOperating expensesDepreciation expenseOther expensesOther gains (losses)Loss on sale of equipmentIncome before taxesIncome taxes expenseNet income$ 582,500285,000297,500$ 20,750132,400153,158(5,125)139,22524,250$114,975Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment was $5,125 (details in b)b. Sold equipment costing $46,875, with accumulated depreciation of $30.125, for $11.625 cash.c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.d. Borrowed $4,000 cash by signing a short-term note payablee. Paid $50,125 cash to reduce the long-term notes payable.f. Issued 2,500 shares of common stock for $20 cash per shareg. Declared and paid cash dividends of $50,100Journal entry worksheet<1234567814>Reconstruct the journal entry for cash payments for inventory, incorporatingthe change in the related balance sheet account(s), if any. Notes were notissued for the purchase of inventory.Note: Enter debits before credits.DateDecember31Account TitleDebitCreditView general journalRecord entryClear entry

Name: AssetsCashFORTEN COMPANYComparative Balance SheetsDecember 31Current
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Description: AssetsCashFORTEN COMPANYComparative Balance SheetsDecember 31Current Year$ 49,80065,810275,656Prior Year$ 73,50050,625251,800Accounts receivableInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabi

First of all we need to find out the amount of inventory purchases made during the year.Then we will…

Answered: Reconstruct the journal entry for cash…

Business

Accounting

Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Notes were not issued for the purchase of inventory.

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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