Journal entry worksheet

1

Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

2

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.

3

Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

4

Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any.

5

Reconstruct the journal entry for the sale of equipment at a loss, incorporating the change in the related balance sheet account(s), if any.

6

Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any.

7

Reconstruct the entry for the purchase of new equipment.

8

Reconstruct the entry for the issuance of the short-term note payable.

9

Reconstruct the entry for the payment on the long-term note payable.

10

Reconstruct the entry for the issuance of common stock.

11

Reconstruct the entry to record the payment of cash dividends.

12

Close the revenue account(s) to income summary.

13

Close the expense and loss accounts to income summary.

14

Close Income Summary to Retained Earnings.

Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are crecit sales, (2) all credits to Accounts Recelvable 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. Additional Information on Current Year Transactions 6. 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 lang-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. Using the income staternent, the comparative balance shout, and the additional information given alove, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the December 31, current year balances. Mete: Enter debits before credits. Forten Compary's current year incame statement, comparative balance shenets, and additional information follnw. Far the year, (1) all sales are credit sales, (2) all credits to Accourts Receivable reflect cash receipts from customers, (3) all purchases of inventory are cri credit, |4 all debits to Accounts Payable retlect cash payments tor inventory, and (b) Other txpenses are paid in aduance and are intlially debited to Prepsid Expenscs. Additional Informetion on Current Year Transections a. The loss on the cash sale of equipment was $5,125 (details in bi. b. Sold equipment cos:ino $46,885, with accumulated depreclation of $30,225, tor $11,625 cash. c. Purchascd equipment costing $96,375 by paying $30,000 cash and signing a long-term note poysble for the balence. d. Banrawed $4000 cash by signing a shott-1ermi note payable. e. Paic 550,125 cash to reduce the long-term notes payable. 1. Issued 2,500 shares of common stock for $20 cesh per shane. g. Declared and paid rash dividends of $50 io0 Prepere the Statement of Cash Nows for the year ended December 31, current year using the Direct Merhod. Hint lise the Cash T-account on the General Ledger tab to Identify the sources and uses of cash. List caslh outflows ass regative values. Forten Company's current year income statement, comparative balance sheets, and acditional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchascs of invertory are on credit. (4) all debits to Accounts Payable reflect cash payments for iriventory, and (5) Other Expenses are paid in actvance and are initially debited to Prepaid Expenses. Additionel Information on Current Year Transections a. The loss on the cash sale of equipment was $5,125 (details in b. b. Sold equipment costing $46,875, with accurmulated 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 94,000 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. . Declared and paid cash dividends of $50,100. Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values