Additional Information

1. A $35,000 note payable is retired at its $35,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $93,000 cash.
4. Received cash for the sale of equipment that had cost $78,000, yielding a $8,700 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

cuiucivo June 30, 2019 and 2018 2019 2018 $ 79,400 73,000 65,000 6,400 223,800 208,000 (51,000) $380,800 $ 15,200 57,000 90,000 8,000 170,200 193,000 (17,000). $346, 200 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 6,000 3,800 37,800 35,000 72,800 $ 34,000 16,000 4,200 54,200 70,000 124,200 250,000 58,000 $380,800 180,000 42,000 $346,200 ZEPHYR INC. Income Statement For Year Ended June 30, 2019 Sales $1,124,000 Cost of goods sold 687,000 Gross profit 437,000 Operating expenses Depreciation expense $ 95,000 Other expenses 111,000 Total operating expenses 206,000 231,000 Other gains (losses) Gain on sale of equipment 8,700 Income before taxes 239,700 Income taxes expense 73,370 Net income $ 166,330 1 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. 2 f 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. 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