1 GL1201 - Based on Exercise 12-11 LO P2, P3, A1 15 points Use the following financial statements and additional information, eBook Print 2018 References TWININGS INC Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 61,800 Accounts receivable, net 81,000 Inventory 68,000 Prepaid expenses 6,100 Total current assets 216,900 Equipment 195,000 Aceum. depreciation-Equipment (48,000). Total assets $363,900 Liabilities and Equity Accounts payable $ 31,000 Wages payable 7,000 Income taxes payable 4,500 Total current liabilities 42,500 Notes payable (long term) 40.000 Total liabilities 82,500 Equity Common stock, 55 par value 240,000 Retained earnings 41,400 Total liabilities and equity $363,900 $ 10,400 63,000 94,000 7,600 175,000 181,000 (16,000) $340,000 $ 38,000 17,000 5,000 60,000 80,000 140,000 170,000 30,000 $340,000 1 Total liabilities and equity $363,900 $340,000 5 points eBook TWININGS INC. Income Statement For Year Ended June 30, 2019 Sales $1,038,000 Cost of goods sold 635,000 Gross profit 403,000 Operating expenses Depreciation expense $ 87,000 Other expenses 103,000 Total operating expenses 190,000 213,000 Other gains (losses) Gain on sale of equipment 6,900 Income before taxes 219,900 Income taxes expense 67,310 Net Income $ 152,590 Print References Additional Information a. A $40,000 note payable is retired at its $40,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $85,000 cash. d. Received cash for the sale of equipment that had cost $71,000, yielding a $6,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Using the income statement, the comparative balance sheet, and the additional information given at the summarized activity of the current fiscal year. Upon completion, the trial balance tab shou 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. Date Account Title Debit Credit Jun 30 Cash Accounts receivable, net Sales 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 give the summarized activity of the current fiscal year. Upon completion, the trial balance tab balances. View transaction list Journal entry worksheet S 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 Date Account Title Debit Credit Jun 30 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Using the income statement, the comparative balance sheet, and the additional information given abc the summarized activity of the current fiscal year. Upon completion, the trial balance tab should balances. View transaction list Journal entry worksheet Reconstruct the entry to record the retirement of the $40,000 note payable at its $40,000 carrying (book) value in exchange for cash. Note: Enter debits before credits Date Account Title Debit Credit Jun 30 Close all revenue and gain accounts to income summary. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Prey 1 of 1 Next 12-11 Saved Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Using the income statement, the comparative balance sheet, and the additional information given the summarized activity of the current fiscal year. Upon completion, the trial balance tab she balances. View transaction list 5 Journal entry worksheet Saved Ch 12 GL EX 12-11 1 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method 15 points Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the cas account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. eBook Unadjusted TWININGS INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Print References Cash flows from investing activities: Cash flows from financing activities: 1 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method 15 points Prepare the operating activities section of the statement of cash flows using the indirect met reductions to net cash provided by operating activities as negative values. eBook Unadjusted TWININGS INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Print References Adjustments to reconcile net income to net cash provided by operating activities