BARCELONA INC Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 86,300 $ 41,700 Accounts receivable, net 78,000 61,000 Inventory 66,000 92,000 Prepaid expenses 5,000 6,300 Total current assets 235,300 201,000 Equipment 153,000 142,000 Accum depreciationEquipment (39,000 ) (13,000 ) Total assets $ 349,300 $ 330,000 Liabilities and Equity Accounts payable $ 30,000 $ 36,000 Wages payable 8,000 19,000 Income taxes payable 3,600 4,000 Total current liabilities 41,600 59,000 Notes payable (long term) 38,000 75,000 Total liabilities 79,600 134,000 Equity Common stock, $5 par value 220,000 160,000 Retained earnings 49,700 36,000 Total liabilities and equity $ 349,300 $ 330,000 BARCELONA INC Income Statement For Year Ended June 30, 2019 Sales $ 803,000 Cost of goods sold 491,000 Gross profit 312,000 Operating expenses Depreciation expense $ 68,000 Other expenses 77,000 Total operating expenses 145,000 167,000 Other gains (losses) Gain on sale of equipment 3,300 Income before taxes 170,300 Income taxes expense 52,130 Net income $ 118,170 Additional Information A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash The only changes affecting retained earnings are net income and cash dividends paid New equipment is acquired for $67,000 cash Received cash for the sale of equipment that had cost $56,000, yielding a $3,300 gain Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement All purchases and sales of inventory are on credit 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 2) June 30) Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any 3) June 30) Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any 4) June 30) Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any 5) June 30) 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) June 30) Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any 7) June 30) Reconstruct the entry to record the retirement of the $38,000 note payable at its $38,000 carrying (book) value in exchange for cash 8) June 30 ) Reconstruct the entry for the purchase of new equipment 9) June 30) Reconstruct the entry for the issuance of common stock 10) June 30) Close all revenue and gain accounts to income summary 11) June 30) Close all expense accounts to income summary 12) June 30) Close Income Summary to Retained Earnings 13) June 30) Reconstruct the journal entry for cash dividends paid Options For the Account Title 000 No journal entry required 101 Cash 106 Accounts receivable, net 120 Inventory 125 Prepaid expenses 150 Equipment 151 Accumulated depreciation Equipment 201 Accounts payable 202 Wages payable 210 Income taxes payable 220 Notes payable (short term) 251 Notes payable (long term) 310 Common stock, $5 par value 312 Paid in capital in excess of par Common 318 Retained earnings 401 Sales 413 Sales discounts 414 Sales returns and allowances 502 Cost of goods sold 610 Depreciation expense 615 Other expenses 620 Loss on sale of equipment 621 Gain on sale of equipment 630 Income taxes expense 700 Income summary continued Begin by selecting Post closing from the drop down menu Verify that each balance agrees with the June 30, 2019 balance sheet above Continued Options for the left column except for the last boxes of all the cash flows Amortization expense Cash paid for dividends Cash paid for equipment Cash paid for income taxes Cash paid for merchandise Cash paid for operating expenses Cash paid to retire notes Cash received from customers Cash received from sale of equipment Cash received from stock issuance Decrease in accounts payable Decrease in accounts receivable Decrease in income taxes payable Decrease in inventory Decrease in prepaid expenses Decrease in wages payable Depreciation expense Gain on sale of equipment Increase in accounts payable Increase in accounts receivable Increase in income taxes payable Increase in inventory Increase in prepaid expenses Increase in wages payable Loss on sale of equipment Net income Options for the remaining boxes of all the cash flows Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used by financing activities Net cash used by investing activities Net cash used by operating activities Prepare the operating activities section of the statement of cash flows using the indirect method Enter reductions to net cash provided by operating activities as negative values Options for the left column except for the last box Amortization expense Cash paid for dividends Cash paid for equipment Cash paid for income taxes Cash paid for merchandise Cash paid for operating expenses Cash paid to retire notes Cash received from customers Cash received from sale of equipment Cash received from stock issuance Decrease in accounts payable Decrease in accounts receivable Decrease in income taxes payable Decrease in inventory Decrease in prepaid expenses Decrease in wages payable Depreciation expense Gain on sale of equipment Increase in accounts payable Increase in accounts receivable Increase in income taxes payable Increase in inventory Increase in prepaid expenses Increase in wages payable Loss on sale of equipment Net income Options for the last box Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used by financing activities Net cash used by investing activities Net cash used by operating activities Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019 Direct Method tab Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method Indirect Method tab Prepare the reconciliation to the indirect method 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 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method As your reconstructed entries are recorded, you will explain the changes in the beginning and ending balances for each account Unadjusted General Ledger Account Cash Accounts receivable, net No Debit Credit No Debit Credit Date Jun 30 Balance 41,700 Date Jun 30 Balance 61,000 Inventory Debit Prepaid expenses Debit Credit No Credit No Date Jun 30 Balance 92,000 Date Jun 30 Balance 6,300 Equipment Accumulated depreciation Equipment Equipment Accumulated depreciation Equipment No Debit Credit No Debit Credit Date Jun 30 Balance 142,000 Date Jun 30 Balance 13,000 Wages payable Accounts payable Debit Credit No Date No Debit Credit Balance 36,000 Date Jun 30 Balance 19,000 Jun 30 Notes payable (long term) Income taxes payable Debit Credit No Date No Debit Credit Balance 4,000 Date Jun 30 Balance 75,000 Jun 30 Common stock, $5 par value Retained earnings Debit Credit No Debit Credit No Date Jun 30 Balance 160,000 Date Jun 30 Balance 36,000 BARCELONA INC Trial Balance June 30, 2019 Account Title Debit Credit $ 41,700 61,000 92,000 6,300 142,000 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 Total 13,000 36,000 19,000 4,000 75,000 160,000 36,000 343,000 $ 343,000 $ Requirement uIELT CL Journal Illal balance Ledger Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method Hint Use the Cash T account on the General Ledger tab to identify the sources and uses of cash List cash outflows as negative values Unadjusted BARCELONA INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities

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BARCELONA INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 86,300 $ 41,700 Accounts receivable, net 78,000 61,000 Inventory 66,000

BARCELONA INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019			2018
Assets
Cash	$	86,300		$	41,700
Accounts receivable, net		78,000			61,000
Inventory		66,000			92,000
Prepaid expenses		5,000			6,300
Total current assets		235,300			201,000
Equipment		153,000			142,000
Accum. depreciationEquipment		(39,000	)		(13,000	)
Total assets	$	349,300		$	330,000
Liabilities and Equity
Accounts payable	$	30,000		$	36,000
Wages payable		8,000			19,000
Income taxes payable		3,600			4,000
Total current liabilities		41,600			59,000
Notes payable (long term)		38,000			75,000
Total liabilities		79,600			134,000
Equity
Common stock, $5 par value		220,000			160,000
Retained earnings		49,700			36,000
Total liabilities and equity	$	349,300		$	330,000

BARCELONA INC. Income Statement For Year Ended June 30, 2019
Sales			$	803,000
Cost of goods sold				491,000
Gross profit				312,000
Operating expenses
Depreciation expense	$	68,000
Other expenses		77,000
Total operating expenses				145,000
				167,000
Other gains (losses)
Gain on sale of equipment				3,300
Income before taxes				170,300
Income taxes expense				52,130
Net income			$	118,170

Additional Information

A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $67,000 cash.
Received cash for the sale of equipment that had cost $56,000, yielding a $3,300 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.

image text in transcribed 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.

image text in transcribed 2) June 30) Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any.

3) June 30) Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

4) June 30) Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any.

5) June 30) 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) June 30) Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any.

7) June 30) Reconstruct the entry to record the retirement of the $38,000 note payable at its $38,000 carrying (book) value in exchange for cash.

8) June 30 ) Reconstruct the entry for the purchase of new equipment.

9) June 30) Reconstruct the entry for the issuance of common stock.

10) June 30) Close all revenue and gain accounts to income summary.

11) June 30) Close all expense accounts to income summary.

12) June 30) Close Income Summary to Retained Earnings.

13) June 30) Reconstruct the journal entry for cash dividends paid.

Options For the Account Title

000: No journal entry required
101: Cash
106: Accounts receivable, net
120: Inventory
125: Prepaid expenses
150: Equipment
151: Accumulated depreciation - Equipment
201: Accounts payable
202: Wages payable
210: Income taxes payable
220: Notes payable (short-term)
251: Notes payable (long-term)
310: Common stock, $5 par value
312: Paid-in capital in excess of par - Common
318: Retained earnings
401: Sales
413: Sales discounts
414: Sales returns and allowances
502: Cost of goods sold
610: Depreciation expense
615: Other expenses
620: Loss on sale of equipment
621: Gain on sale of equipment
630: Income taxes expense
700: Income summary

image text in transcribed continued

Begin by selecting "Post-closing" from the drop-down menu. Verify that each balance agrees with the June 30, 2019 balance sheet above.

image text in transcribed Continued

Options for the left column except for the last boxes of all the cash flows

Amortization expense
Cash paid for dividends
Cash paid for equipment
Cash paid for income taxes
Cash paid for merchandise
Cash paid for operating expenses
Cash paid to retire notes
Cash received from customers
Cash received from sale of equipment
Cash received from stock issuance
Decrease in accounts payable
Decrease in accounts receivable
Decrease in income taxes payable
Decrease in inventory
Decrease in prepaid expenses
Decrease in wages payable
Depreciation expense
Gain on sale of equipment
Increase in accounts payable
Increase in accounts receivable
Increase in income taxes payable
Increase in inventory
Increase in prepaid expenses
Increase in wages payable
Loss on sale of equipment
Net income

Options for the remaining boxes of all the cash flows

Net cash provided by financing activities
Net cash provided by investing activities
Net cash provided by operating activities
Net cash used by financing activities
Net cash used by investing activities
Net cash used by operating activities

Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values.

Options for the left column except for the last box

Amortization expense
Cash paid for dividends
Cash paid for equipment
Cash paid for income taxes
Cash paid for merchandise
Cash paid for operating expenses
Cash paid to retire notes
Cash received from customers
Cash received from sale of equipment
Cash received from stock issuance
Decrease in accounts payable
Decrease in accounts receivable
Decrease in income taxes payable
Decrease in inventory
Decrease in prepaid expenses
Decrease in wages payable
Depreciation expense
Gain on sale of equipment
Increase in accounts payable
Increase in accounts receivable
Increase in income taxes payable
Increase in inventory
Increase in prepaid expenses
Increase in wages payable
Loss on sale of equipment
Net income

Options for the last box

Net cash provided by financing activities
Net cash provided by investing activities
Net cash provided by operating activities
Net cash used by financing activities
Net cash used by investing activities
Net cash used by operating activities

Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. 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 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method As your reconstructed entries are recorded, you will explain the changes in the beginning and ending balances for each account. Unadjusted General Ledger Account Cash Accounts receivable, net No. Debit Credit No. Debit Credit Date Jun 30 Balance 41,700 Date Jun 30 Balance 61,000 Inventory Debit Prepaid expenses Debit Credit No. Credit No. Date Jun 30 Balance 92,000 Date Jun 30 Balance 6,300 Equipment Accumulated depreciation - Equipment Equipment Accumulated depreciation - Equipment No. Debit Credit No. Debit Credit Date Jun 30 Balance 142,000 Date Jun 30 Balance 13,000 Wages payable Accounts payable Debit Credit No. Date No. Debit Credit Balance 36,000 Date Jun 30 Balance 19,000 Jun 30 Notes payable (long-term) Income taxes payable Debit Credit No. Date No. Debit | Credit Balance 4,000 Date Jun 30 Balance 75,000 Jun 30 Common stock, $5 par value Retained earnings Debit Credit No. Debit Credit No. Date Jun 30 Balance 160,000 Date Jun 30 Balance 36,000 BARCELONA INC. Trial Balance June 30, 2019 Account Title Debit Credit $ 41,700 61,000 92,000 6,300 142,000 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 Total 13,000 36,000 19,000 4,000 75,000 160,000 36,000 343,000 $ 343,000 $ Requirement uIELT CL Journal Illal balance Ledger Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Unadjusted BARCELONA INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Statement of Cash Flows (Indirect Method). For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities