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 $64,000 cash.

d. Received cash for the sale of equipment that had cost $53,000, yielding a $2,700 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.

2018 Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $113,700 Accounts receivable, net 70,000 Inventory 71,000 Prepaid expenses 4,800 Total current assets 259,500 Equipment 144,000 Accum. depreciation-Equipment (36,000) Total assets $367,500 Liabilities and Equity Accounts payable $ 34,000 Wages payable 6,000 Income taxes payable 4,500 Total current liabilities 44,500 Notes payable (long term) 45,000 Total liabilities 89,500 Equity Common stock, $5 par value 220,000 Retained earnings 58,000 Total liabilities and equity $367,500 $ 75,000 55,000 98,000 6,000 234,000 133,000 (12,000) $ 355,000 $ 42,000 16,000 5,000 63,000 90,000 153,000 160,000 42,000 $355,000 Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $65,000 Other expenses 73,000 Total operating expenses $757,000 463,000 294,000 138,000 156,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,700 158,700 48,580 $110, 120 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, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances. View transaction list Journal entry worksheet 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. Date Account Title Debit Credit Jun 30 Record entry Clear entry Mow general Journal Requirement General Journal General Ledger Trial Balance Direct Method In MO Using the income statement, the comparative balance sheet, and the additio the summarized activity of the current fiscal year. Upon completion, th balances. View transaction list x 1 Reconstruct the journal entry for cash receipts from customers, Incorporating the change in the related balance sheet account(s), if any. 01 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. Note: Journal entry has been entered Record entry Cloor any Vio View transaction list 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 $45,000 note payable at its $45,000 carrying (book) value in exchange for cash. 8 Reconstruct the entry for the purchase of new equipment. Note: journal entry has been entered Record entry Clear entry 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. Note: = journal entry has been entered Record entry Clear entry VI