Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. direct method forten company, a merchandiser, r

Direct method Forten Company, a merchandiser, recently completed its calendar-year 2018 operations....

90.2K

Verified Solution

Question

Accounting

image
image
image
Direct method
Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. For the year, (T) 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. The company's income statement, balance sheets, and additional information follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2817 2018 2817 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum, depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilties Long-term notes payable Total liabilities Equity Common stock, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total 1labilities and equity s 78,400 92,580 69,625 278,880 94,460 304, 156 1,400 478,416 415 788 127,000 138,50 (46,125) (55,500) $570,791 506,780 s 72,141 143,175 15,7009,880 152,975 67.750 220,725 87,841 55,500 143, 341 200,750 178,750 107,225 s 570,791 $506,700 66,080 160,700

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

10 Points DETAILS h 0 PREVIOUS ANSWERS H e owner of an apartment building can...

Statistics
Q

Shawna finds a study of American women that has an equation to predict weight in...

Statistics
Q

Show all work. Label and clearly explain your answer. This is very important. 1) You must...

Finance
Q

Provide answers for the following: Compare condition based maintenance with planned preventive maintenance. In your own words...

Electrical Engineering
Q

Algebra Prep 2023 Verify Solutions Linear Inequality Determine which point or points are solutions of...

Geometry
Q

Use the method of this section to solve the linear programming problem Minimize C x...

Basic Math
Q

a Using a coefficient of 2 for x the equation for the tangent plane is...

Calculus
Q

A corporation has 50,000 shares of $25 par value stock outstanding that has a current...

Accounting
Q

avege Rapide owns and operates a lorge eutomatic car wash facility neor Montreal. The following...

Accounting
Q

Rodriguez Corporation issues 12,000 shares of its common stock for $214,600 cash on February 20....

Accounting
Q

1. S offered to sell his house and lot to B for P2,000,000, who was...

Accounting
Q

True or False: Modigliani and Miller argued that each shareholder can construct his or her...

Finance