15 points eBook D A\" HEP Print Refele n ces GL1201 - Based on Exercise 12-11 LO P1, P2, P3, A1 Use the following nancial statements and additional information. SMITH INC. Comparative Balance sheets June 30, 2017 and 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciationEquipment 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 2017 $116,500 63,000 63,000 4,400 251,900 127,000 (33,000) $345,900 $ 26,000 6,000 3,600 35,600 33,000 68,600 240,000 37,300 $345,900 2016 $ 60,500 53,000 83,000 5,500 207,000 113,000 111,000! $314,000 $ 32,000 16,000 4,000 52,000 65,000 117,000 170,000 27,000 $314,000 15 points eEook Ask Print References SMITH INC. Income Statement For Year Ended June 30, 2017 Sales $635,000 Cost of goods sold 419,000 Gross profit 266,000 operating expenses Depreciation expense $60,000 other expenses 63,000 Total operating expenses 128,000 133,000 other gains (losses) Gain on sale of equipment 2,100 Income before taxes 140,100 Income taxes expense 42,830 Net income 5 97,220 Additional Information a. A $33,000 note payable is retired at its $33,000 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 $59,000 cash. d. Received cash for the sale of equipment that had cost $50,000, yielding a $2,100 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. Geneml Indirect Requirement Ledger Trial Balance Direct Method 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 scal year. Upon completion, the trial balance tab should agree with the June 30, 2017 balances. View transaction list ' Journal entrv