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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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