1) 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.

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 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 $35,000 note payable at its $35,000 carrying (book) value in exchange for cash.

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.

11) Close all expense accounts to income summary.

12) Close Income Summary to Retained Earnings.

13) Reconstruct the journal entry for cash dividends paid.

Use the following financial statements and additional information. SACRAMENTO INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $100,800 76,000 65,000 5,400 247,200 170,000 (42,000) $375, 200 $ 45,200 59,000 90,000 6,800 201,000 157,000 (14,000) $344,000 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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 $ 28,000 8,000 4,500 40,500 35,000 75,500 $ 34,000 19,000 5,000 58,000 70,000 128,000 250,000 49,700 $375,200 180,000 36,000 $344,000 SACRAMENTO INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $73,000 Other expenses 87,000 Total operating expenses $886,000 542,000 344,000 160,000 184,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,300 188,300 57,640 $130, 660 Additional Information a. A $35,000 note payable is retired at its $35,000 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 $72,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,300 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 Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Unadjusted SACRAMENTO INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Unadjusted SACRAMENTO INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities