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Accounting 202 Two Problems – Forten Company& GOLDEN CORPORATION

Accounting 202 Two Problems – Forten Company& GOLDEN CORPORATION GOLDEN CORPORATION Income Statement For Year Ended December 31, 2013 Sales $ 1,800,000 Cost of goods sold 1,088,000 Gross profit 712,000 Operating expenses Depreciation expense $ 53,000 Other expenses 499,000 552,000 Income before taxes 160,000 Income taxes expense 21,000 Net income $ 139,000 Additional Information on

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Additional Information on Year 2013 Transactions

Additional Information on Year 2013 Transactions a. Net income was $108,500. b. Accounts receivable increased. c. Merchandise inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $20,000. g. Sold equipment costing $46,500, with accumulated depreciation of $29,500, for $11,500 cash. This yielded a loss of $5,500. h. Purchased equipment costing $98,000 by paying $30,000 cash and (i.) by

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Total liabilities and equity $ 514,340 $ 445,400

Total liabilities and equity $ 514,340 $ 445,400 FORTEN COMPANY Income Statement For Year Ended December 31, 2013 Sales $ 582,500 Cost of goods sold 289,000 Gross profit 293,500 Operating expenses Depreciation expense $ 20,000 Other expenses 134,000 154,000 Other gains (losses) Loss on sale of equipment (5,500) Income before taxes 134,000 Income taxes expense

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Problem 12-2AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4

Problem 12-2AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Forten Company, a merchandiser, recently completed its calendar-year 2013 operations. 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

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