Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,600 (details in b ). b. Sold equipment costing $50,000, with accumulated depreciation of $30,000, for $14,400 cash. c. Purchased equipment costing $106,000 by paying $40,000 cash and signing a long-term note payable for the balance. d. Borrowed $7,000 cash by signing a short-term note payable. e. Paid $41,000 cash to reduce the long-term notes payable. f. Issued 3,000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $69,400. Journal entry worksheet 1 8 14 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. Note: Enter debits before credits. Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,600 (details in b ). Carlberg 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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses