1 Use the following financial statements and additional information 75 points 2018 TWININGS INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 61,300 Accounts receivable, net 81,000 Inventory 68,000 Prepaid expenses 6,100 Total current assets 216,900 Equipment 195,000 Accumulated depreciation-Equipment (45.000 Total assets 5 363,900 Labilities and Equity Accounts payable $ 31,000 lages payable 7,000 Income taxes payable 1,500 Total current flities 42,500 Notes payable (long ters) 40.000 Total Italities 82,500 Equity Con stock, 35 per value 240,000 Betained earnings 41,400 Total Italities and equity $363,900 $ 10,400 63,00 94,000 7,600 175,000 181,600 (16,099) $ 340,000 0 References $ 38,000 17,000 5.000 60,000 HO,000 140,000 170,000 30.000 $ 340,000 $ 1,038,000 635,000 403,000 TWININOS INCORPORATED Incon Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 37,000 Other expenses 103,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 5.190,000 213,000 5,900 219,900 67310 $ 152,590 Check my Income before taxes Income taxes expense Net income 219,900 67310 $ 152,590 Additional Information a. A $40,000 note payable is retired at its $40.000 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 $85,000 cash. d. Received cash for the sale of equipment that had cost $71,000, yielding a $6,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit General General Indirect Requirement Trial Balance Direct Method Journal Ledger Method 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 ces View transaction fist Journal entry worksheet 13 3 Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(o), if any, Note: Enter det before credits. Debit Credit Date Account Title Prey 1 of 1 !!! Next View transaction list Journal entry worksheet ..... Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal View transaction list Journal entry worksheet Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general Journal Journal entry worksheet Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general Journal Journal entry worksheet
