2018 DELRAY INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 84,200 Accounts receivable, net 70,000 Inventory 71,000 Prepaid expenses 5,300 Total current assets 230,500 Equipment 163,000 Accum. depreciation-Equipment (42,000) Total assets $351,500 Liabilities and Equity Accounts payable $ 34,000 Wage: ayable 7,000 Income taxes payable 4,100 Total current liabilities 45, 100 Notes payable (long term) 45,000 Total liabilities 90, 100 Equity Common stock, $5 par value 220,000 Retained earnings 41,400 Total liabilities and equity $351,500 $ 47,000 55,000 98,000 6,600 206,600 151,000 (14,000) $343, 600 $ 42,000 17,000 4,600 63,600 90,000 153,600 160,000 30,000 $343, 600 $852,000 521,000 331,000 DELRAY INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $71,000 Other expenses 83,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 154,000 177,000 3,900 180,900 55, 370 $125,530 Additional Information a. A $45,000 note payable is retired at its $45,000 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 $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 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. Unadjusted DELRAY INC. Trial Balance June 30, 2019 Account Title Credit $ Debit 47,000 55,000 98,000 6,600 151,000 Cash Accounts receivable, net Inventory Prepaid expenses Equipment Accumulated depreciation - Equipment Accounts payable Wages payable Income taxes payable Notes payable (long-term) Common stock, $5 par value Retained earnings 14,000 42,000 17,000 4,600 90,000 160,000 30,000 357,600 Total 357,600 $ 1 2 3 4 5 6 7 8 13 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 Jun 30 1 2 3 4 5 6 7 8 13 Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Close all revenue and gain accounts to income summary. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30