GL1202 (Algo) - Based on Problem 12-3A LO A1, P2, P3

Ryan 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.

RYAN COMPANY Comparative Balance Sheets December 31
	Current Year	Prior Year
Assets
Cash	$ 73,900	$93,300
Accounts receivable	77,000	59,000
Inventory	279,000	255,000
Prepaid expenses	2,200	2,700
Total current assets	432,100	410,000
Equipment	192,000	132,000
Accumulated depreciationEquipment	(40,000)	(56,000)
Total assets	$ 584,100	$ 486,000
Liabilities and Equity
Accounts payable	55,100	119,000
Short-term notes payable	15,000	9,000
Total current liabilities	70,100	128,000
Long-term notes payable	79,000	59,000
Total liabilities	149,100	187,000
Equity
Common stock, $5 par value	186,500	170,000
Paid-in capital in excess of par, common stock	49,500	0
Retained earnings	199,000	129,000
Total liabilities and equity	584,100	486,000

RYAN COMPANY Income Statement For Current Year Ended December 31
Sales		$ 682,000
Cost of goods sold		309,000
Gross profit		373,000
Operating expenses
Depreciation expense	$ 19,000
Other expenses	156,000	175,000
Other gains (losses)
Loss on sale of equipment		(5,900)
Income before taxes		192,100
Income taxes expense		33,000
Net income		$ 159,100

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $5,900 (details in b).
2. Sold equipment costing $52,000, with accumulated depreciation of $35,000, for $11,100 cash.
3. Purchased equipment costing $112,000 by paying $34,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $58,000 cash to reduce the long-term notes payable.
6. Issued 3,300 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $89,100.

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.

PLEASE POST THE ANSWER TO THE GENERAL JOURNAL PART OF THIS QUESTION. I HAVE THE OTHER PARTS ANSWERED. Thanks and I will be commenting and voting on the expert answer.

• 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.

Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method 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. View transaction list Journal entry worksheet 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. Account Title Debit Credit Date December 31 Cash Accumulated depreciation - Equipment Loss on sale of equipment Equipment Record entry Clear entry View general Journal Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method 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. View transaction list Journal entry worksheet 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. Account Title Debit Credit Date December 31 Cash Accumulated depreciation - Equipment Loss on sale of equipment Equipment Record entry Clear entry View general Journal