es euil, alu (4) all cepitS TO ACCOUnts Payable Tenett Cash payments r inventory. Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) $ 143,400 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 Equipment FORTEN COMPANY $ 637,500 296,000 341,500 31,750 175,150 (16,125) 150,225 39,650 Comparative Balance Sheets December 31 Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value $ 110,575 Current Year Prior Year $ 66,400 82,380 $ 84,500 61,625 262,800 292,156 1,320 2,115 442,256 411,040 146,500 119,000 (42,125) (51,500) $ 546,631 $ 478,540 $ 64,141 72,800 136,941 $ 131,175 67,950 199,125 179,250 161,250 54,000 176,440 0 118,165 $ 546,631 $ 478,540 Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity dditional Information on Current Year Transactions a. The loss on the cash sale of equipment was $16,125 (details in b). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash. c. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term notes payable for the balance. d. Paid $50,525 cash to reduce the long-term notes payable. e. Issued 3,600 shares of common stock for $20 cash per share. Prev 1 of 1 Next >