Assets Cash $ 58,900 $ 79,500 Accounts receivable 74,830 56,625 Inventory 284,656 257,800 Prepaid expenses 1,270 2,015 Total current assets 419,656 395,940 Equipment 151,500 114,000 Accum. depreciation—Equipment (39,625 ) (49,000 ) Total assets $ 531,531 $ 460,940 Liabilities and Equity Accounts payable $ 59,141 $ 123,675 Short-term notes payable 11,800 7,200 Total current liabilities 70,941 130,875 Long-term notes payable 62,000 54,750 Total liabilities 132,941 185,625 Equity Common stock, $5 par value 171,750 156,250 Paid-in capital in excess of par, common stock 46,500 0 Retained earnings 180,340 119,065 Total liabilities and equity $ 531,531 $ 460,940 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 612,500 Cost of goods sold 291,000 Gross profit 321,500 Operating expenses Depreciation expense $ 26,750 Other expenses 138,400 165,150 Other gains (losses) Loss on sale of equipment (11,125 ) Income before taxes 145,225 Income taxes expense 32,650 Net income $ 112,575 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $11,125 (details in b). Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance. Borrowed $4,600 cash by signing a short-term note payable. Paid $53,125 cash to reduce the long-term notes payable. Issued 3,100 shares of common stock for $20 cash per share. Declared and paid cash dividends of $51,300. I need help figuring the top portion of the promblem out.
Assets Cash $ 58,900 $ 79,500 Accounts receivable 74,830 56,625 Inventory 284,656 257,800 Prepaid expenses 1,270 2,015 Total current assets 419,656 395,940 Equipment 151,500 114,000 Accum. depreciation—Equipment (39,625 ) (49,000 ) Total assets $ 531,531 $ 460,940 Liabilities and Equity Accounts payable $ 59,141 $ 123,675 Short-term notes payable 11,800 7,200 Total current liabilities 70,941 130,875 Long-term notes payable 62,000 54,750 Total liabilities 132,941 185,625 Equity Common stock, $5 par value 171,750 156,250 Paid-in capital in excess of par, common stock 46,500 0 Retained earnings 180,340 119,065 Total liabilities and equity $ 531,531 $ 460,940 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 612,500 Cost of goods sold 291,000 Gross profit 321,500 Operating expenses Depreciation expense $ 26,750 Other expenses 138,400 165,150 Other gains (losses) Loss on sale of equipment (11,125 ) Income before taxes 145,225 Income taxes expense 32,650 Net income $ 112,575 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $11,125 (details in b). Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance. Borrowed $4,600 cash by signing a short-term note payable. Paid $53,125 cash to reduce the long-term notes payable. Issued 3,100 shares of common stock for $20 cash per share. Declared and paid cash dividends of $51,300. I need help figuring the top portion of the promblem out.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Assets | |||||||||||
Cash | $ | 58,900 | $ | 79,500 | |||||||
74,830 | 56,625 | ||||||||||
Inventory | 284,656 | 257,800 | |||||||||
Prepaid expenses | 1,270 | 2,015 | |||||||||
Total current assets | 419,656 | 395,940 | |||||||||
Equipment | 151,500 | 114,000 | |||||||||
Accum. |
(39,625 | ) | (49,000 | ) | |||||||
Total assets | $ | 531,531 | $ | 460,940 | |||||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 59,141 | $ | 123,675 | |||||||
Short-term notes payable | 11,800 | 7,200 | |||||||||
Total current liabilities | 70,941 | 130,875 | |||||||||
Long-term notes payable | 62,000 | 54,750 | |||||||||
Total liabilities | 132,941 | 185,625 | |||||||||
Equity | |||||||||||
Common stock, $5 par value | 171,750 | 156,250 | |||||||||
Paid-in capital in excess of par, common stock | 46,500 | 0 | |||||||||
180,340 | 119,065 | ||||||||||
Total liabilities and equity | $ | 531,531 | $ | 460,940 | |||||||
FORTEN COMPANY Income Statement For Current Year Ended December 31 |
|||||||
Sales | $ | 612,500 | |||||
Cost of goods sold | 291,000 | ||||||
Gross profit | 321,500 | ||||||
Operating expenses | |||||||
Depreciation expense | $ | 26,750 | |||||
Other expenses | 138,400 | 165,150 | |||||
Other gains (losses) | |||||||
Loss on sale of equipment | (11,125 | ) | |||||
Income before taxes | 145,225 | ||||||
Income taxes expense | 32,650 | ||||||
Net income | $ | 112,575 | |||||
Additional Information on Current Year Transactions
- The loss on the cash sale of equipment was $11,125 (details in b).
- Sold equipment costing $64,875, with
accumulated depreciation of $36,125, for $17,625 cash. - Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance.
- Borrowed $4,600 cash by signing a short-term note payable.
- Paid $53,125 cash to reduce the long-term notes payable.
- Issued 3,100 shares of common stock for $20 cash per share.
- Declared and paid cash dividends of $51,300.
I need help figuring the top portion of the promblem out.
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