FORTEN COMPANY

Comparative Balance Sheets

December $31$

Assets

Cash

Accounts receivable

Inventory

Prepaid expenses

Total current assets

Equipment

Accumulated depreciation$-$Equipment

Total assets

Liabilities and Equity

Accounts payable

Short$-$term notes payable

Total current liabilities

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

Current Year Prior Year

FORTEN COMPANY

Income Statement

For Current Year Ended December $31$

Sales

Cost of goods sold

Gross profit

Operating expenses

Depreciation expense

Other expenses

other gains $($losses$)$

Loss on sale of equipment

Income before taxes

Income taxes expense

Net income

Additional Information on Current Year Transactions

a$.$ 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 payable

e$.$ Paid $$50,125$ cash to reduce the long$-$term notes payable.

f$.$ Issued $2,500$ shares of common stock for $$20$ cash per share

g$.$ Declared and paid cash dividends of $$50,100.$

Journal entry worksheet

cdots.

Reconstruct the journal entry for cash receipts from customers, incorporating

the change in the related balance sheet account$($s$),$ if any.

Note: Enter debits before credits.