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. 2018 MARCELLUS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 62,300 Accounts receivable, net 78,000 Inventory 66,000 Prepaid expenses 6,000 Total current assets 212,300 Equipment 192,000 Accum. depreciation-Equipment (48,000) Total assets $356,300 Liabilities and Equity Accounts payable $ 30,000 Wages payable 6,000 Income taxes payable 4,300 Total current liabilities 40,300 Notes payable (long term) 38,000 Total liabilities 78,300 Equity Common stock, $5 par value 220,000 Retained earnings 58,000 Total liabilities and equity $356,300 $ 11,300 61,000 92,000 7,500 171,800 178,000 (16,000) $333, 800 $ 36,000 16,000 4,800 56,800 75,000 131,800 160,000 42,000 $333,800 MARCELLUS INC. Income Statement For Year Ended June 30, 2019 Sales $1,018,000 Cost of goods sold 623,000 Gross profit 395,000 Operating expenses Depreciation expense $ 85,000 Other expenses 101,000 Total operating expenses 186,000 209,000 Other gains (losses) Gain on sale of equipment 6,500 Income before taxes 215,500 Income taxes expense 65,960 Net income $ 149,540 Additional Information a. A $38,000 note payable is retired at its $38,000 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 $83,000 cash. d. Received cash for the sale of equipment that had cost $69,000, yielding a $6,500 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 General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. Journal entry worksheet Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general journal Journal entry worksheet 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 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 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 given above, the summarized activity of the current fiscal year. Upon completion, the trial balance tab should a balances. View transaction list Journal entry worksheet Use the following financial statements and additional information. 2018 MARCELLUS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 62,300 Accounts receivable, net 78,000 Inventory 66,000 Prepaid expenses 6,000 Total current assets 212,300 Equipment 192,000 Accum. depreciation-Equipment (48,000) Total assets $356,300 Liabilities and Equity Accounts payable $ 30,000 Wages payable 6,000 Income taxes payable 4,300 Total current liabilities 40,300 Notes payable (long term) 38,000 Total liabilities 78,300 Equity Common stock, $5 par value 220,000 Retained earnings 58,000 Total liabilities and equity $356,300 $ 11,300 61,000 92,000 7,500 171,800 178,000 (16,000) $333, 800 $ 36,000 16,000 4,800 56,800 75,000 131,800 160,000 42,000 $333,800 MARCELLUS INC. Income Statement For Year Ended June 30, 2019 Sales $1,018,000 Cost of goods sold 623,000 Gross profit 395,000 Operating expenses Depreciation expense $ 85,000 Other expenses 101,000 Total operating expenses 186,000 209,000 Other gains (losses) Gain on sale of equipment 6,500 Income before taxes 215,500 Income taxes expense 65,960 Net income $ 149,540 Additional Information a. A $38,000 note payable is retired at its $38,000 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 $83,000 cash. d. Received cash for the sale of equipment that had cost $69,000, yielding a $6,500 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 General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. Journal entry worksheet Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general journal Journal entry worksheet 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 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 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 given above, the summarized activity of the current fiscal year. Upon completion, the trial balance tab should a balances. View transaction list Journal entry worksheet