Assets Cash DADE INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 $ 107,400 81,000 2018 $ 43,500 63,000 96,000 69,000 6,600 8,300 264,000 210,800 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 DADE INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold 218,000 (54,000) $ 428,000 $ 33,000 8,000 202,000 (18,000) $ 394,800 $ 40,000 19,000 4,800 63,800 4,300 45,300 43,000 85,000 88,300 148,800 290,000 210,000 49,700 $ 428,000 36,000 $ 394,800 $ 1,192,000 729,000 463,000 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 101,000 117,000 $ 218,000 245,000 10,400 255,400 78,180 $ 177,220 Additional Information a. A $42,000 note payable is retired at its $42,000 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 $99,000 cash. d. Received cash for the sale of equipment that had cost $83,000, yielding a $10,400 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. 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. Requirement View transaction list View journal entry worksheet No Date Account Title 1 June 30 No Transaction Recorded Debit Credit ........ (x) General Ledger Account Cash Accounts receivable, net No. Date Debit Credit Balance No. Date Debit June 30 43,500 June 30 Credit Balance 63,000 Inventory Prepaid expenses No. Date Debit Credit Balance No. June 30 96,000 Date June 30 Debit Credit Balance 8,300 Equipment Accumulated depreciation - Equipment No. Date Debit Credit Balance No. Date Debit Credit June 30 202,000 June 30 Balance 18,000 Accounts payable Wages payable No. Date Debit Credit Balance No. June 30 40,000 Date June 30 Debit Credit Balance 19,000 Income taxes payable No. Date Debit June 30 No. Date June 30 Credit Balance No. 4,800 Date June 30 Notes payable (long-term) Debit Credit Balance 85,000 Retained earnings Credit Balance No. Date Debit Credit Balance 210,000 June 30 36,000 Common stock, $5 par value Debit Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Begin by selecting "Post-closing" from the drop-down menu. Verify that each balance agrees with the June 30, 2019 balance sheet above. Unadjusted 44 DADE INCORPORATED Trial Balance June 30, 2021 Account Title 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 4444444 Total Debit Credit $ 43,500 63,000 96,000 8,300 202,000 18,000 40,000 19,000 4,800 85,000 210,000 36,000 $ 412,800 $ 412,800 DADE INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers Cash flows from investing activities: Gain on sale of equipment Cash flows from financing activities: Cash flows from operating activities: DADE INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash provided by operating activities $ 101,000 (10,400) (18,000) 27,000 1,700 (7,000) (11,000) (500) $ 177,220 82,800 $ 260,020