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Accounting
Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets FORTEN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities. Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 119,175 58,350 177,525 167,250 42,000 182,730 119,655 $ 522,521 $ 450,430 153,250 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. 0 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.

Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets FORTEN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities. Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 119,175 58,350 177,525 167,250 42,000 182,730 119,655 $ 522,521 $ 450,430 153,250 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. 0 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....
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Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets FORTEN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 167,250 42,000 182,730 $ 522,521 d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 $ 119,175 58,350 177,525 153,250 0 119,655 $ 450,430 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.
Transcribed Image Text:Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets FORTEN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 167,250 42,000 182,730 $ 522,521 d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 $ 119,175 58,350 177,525 153,250 0 119,655 $ 450,430 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.
[The following information applies to the questions displayed below.] 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 FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) $ 135,400 23,750 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Total assets Equipment Accumulated depreciation-Equipment FORTEN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings $ 597,500 288,000 309,500 159,150 (8,125) 142,225 28,450 $ 113,775 Current Year Prior Year $ 54,400 70,310 280, 156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 167,250 42,000 182,730 © 533 521 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 $ 119,175 58,350 177,525 153,250 119,655 0 J AWO 430
Transcribed Image Text:[The following information applies to the questions displayed below.] 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 FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) $ 135,400 23,750 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Total assets Equipment Accumulated depreciation-Equipment FORTEN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings $ 597,500 288,000 309,500 159,150 (8,125) 142,225 28,450 $ 113,775 Current Year Prior Year $ 54,400 70,310 280, 156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 167,250 42,000 182,730 © 533 521 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 $ 119,175 58,350 177,525 153,250 119,655 0 J AWO 430
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