At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets Cash Accounts receivable, net Prepaid expenses Inventory 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 Sales Cost of goods sold 2021 $ 74,300 98,000 85,800 2020 $ 66,000 73,000 119,500 6,600 9,800 268,300 264,700 146,000 (38,000) $ 372,700 $ 47,000 8,200 137,000 (20,000) $ 385,300 $ 63,000 19,400 5,600 8,200 60,800 90,600 34,400 82,000 95,200 172,600 264,000 182,000 13,500 30,700 $ 372,700 $ 385,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 788,000 433,000 355,000 89,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 80,600 185,400 4,200 189,600 46,090 $ 143,510 a. A $47,600 note payable is retired at its $47,600 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 $79,600 cash. d. Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.