Question
BARCELONA INCORPORATED Comparative Balance Sheets June 30, 2021 and 2020 2021 Assets Cash $ 86,300. $ 41,700 Accounts receivable, net 78,000 61,00 Inventory 66,000 92,000
BARCELONA INCORPORATED Comparative Balance Sheets June 30, 2021 and 2020 2021
Assets Cash $ 86,300. $ 41,700 Accounts receivable, net 78,000 61,00 Inventory 66,000 92,000 Prepaid expenses 5,000 6,300 Total current assets 235,300 201,000 Equipment 153,000 142,000 Accumulated 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 $ 30,000 BARCELONA INCORPORATED Income Statement For Year Ended June 30, 2021 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 $37,000 note payable is retired at its $37,000 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.
Need help on journal entries
Account Title | Debit | Credit |
---|---|---|
1 | June 30 | Cash |
Accounts receivable, net | ||
Sales | ||
2 | June 30 | Accounts payable |
Cost of goods sold | ||
Inventory | ||
Cash | ||
3 | June 30 | Depreciation expense |
Accumulated depreciation - Equipment | ||
4 | June 30 | Other expenses |
Wages payable | ||
Prepaid expenses | ||
Cash | ||
5 | June 30 | Cash |
Accumulated depreciation - Equipment | ||
Gain on sale of equipment | ||
Equipment | ||
6 | June 30 | Income taxes expense |
Income taxes payable | ||
Cash | ||
7 | June 30 | Notes payable (long-term) |
Cash | ||
8 | June 30 | Equipment |
Cash | ||
9 | June 30 | Cash |
Common stock, $5 par value | ||
10 | June 30 | Sales |
Gain on sale of equipment | ||
Income summary | ||
11 | June 30 | Income summary |
Cost of goods sold | ||
Depreciation expense | ||
Other expenses | ||
Income taxes expense | ||
12 | June 30 | Income summary |
Retained earnings | ||
13 | June 30 | Retained earnings |
Cash |
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