need help asap, need these journal entries
Forten 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. 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. Using the income statement, the comparative balance sheet, and the additional information given above, 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. Journal entry worksheet (1) 2 Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Journal entry worksheet (1) 2 6 7 8 14 Reconstruct the journal entry for the sale of equipment at a loss, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Journal entry worksheet (1) 2 3 8 Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Journal entry worksheet (1) 2 3 (4) 5 6 Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits. Journal entry worksheet 1 2 3 4 5 6 Reconstruct the entry for the issuance of the short-term note payable. Note: Enter debits before credits. Journal entry worksheet (1) ,4 6 7 Reconstruct the entry for the payment on the long-term note payable. Note: Enter debits before credits. Journal entry worksheet Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Journal entry worksheet (1) 6 7 8 9 Reconstruct the entry to record the payment of cash dividends. Note: Enter debits before credits. Journal entry worksheet (1) ,7 9 10 11 Close the revenue account(s) to income summary. Note: Enter debits before credits. Journal entry worksheet (1) 7 8 9 10 11 Close the expense and loss accounts to income summary. Note: Enter debits before credits. Journal entry worksheet (1) ,7 8 10 Close Income Summary to Retained Earnings. Note: Enter debits before credits
