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 IKIBAN INCORPORATED Income Statement 2021 $ 73,700 99,500 86,800 2020 $ 67,000 74,000 121,000 6,700 10,000 266,700 272,000 $ 375,200 $ 48,000 8,300 147,000 (38,500) 138,000 (20,500) $ 389,500 $ 64,500 19,600 5,700 8,400 62,000 92,500 34,600 83,000 96,600 175,500 266,000 183,000 12,600 $ 375,200 31,000 Click to go back, hold to see history $ 389,500 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense For Year Ended June 30, 2021 $ 793,000 434,000 359,000 90,000 81,600 187,400 4,300 191,700 46,190 $ 145,510 Other gains (losses). Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information a. A $48,400 note payable is retired at its $48,400 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 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.