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• 1

   

  Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

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• 2

   

  Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any.

•  

• 3

   

  Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

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• 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 gain, 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 to record the retirement of the $42,000 note payable at its $42,000 carrying (book) value in exchange for cash.

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• 8

   

  Reconstruct the entry for the purchase of new equipment.

•  

• 9

   

  Reconstruct the entry for the issuance of common stock.

•  

• 10

   

  Close all revenue and gain accounts to income summary.

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• 11

   

  Close all expense accounts to income summary.

•  

• 12

   

  Close Income Summary to Retained Earnings.

•  

• 13

   

  Reconstruct the journal entry for cash dividends paid.

Assets Cash FAIRHAVEN INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity FAIRHAVEN INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold 2019 2018 $ 77,000 83,000 $ 25,500 65,000 69,000 96,000 6,200 7,700 235,200 194,200 199,000 $ 383,200 $ 33,000 7,000 (51,000) 184,000 (17,000) $ 361,200 $ 40,000 18,000 4,700 5,200 44,700 63,200 43,000 85,000 87,700 148,200 250,000 180,000 45,500 33,000 $ 383,200 $ 361,200 $ 1,059,000 648,000 411,000 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 89,000 105,000 $ 194,000 217,000 7,300 224,300 68,660 $ 155,640