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t charts

reconsturcted journal entries

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CRUZ, INC. Comparative Balance Sheets December 31 2021 2020 Change Assets Cash Accounts Receivable, net Inventory Prepaid expenses Total Current Assets Furniture Accum. Depreciation-Furniture Total Assets 94,800 41,000 85,800 5,400 227,000 109,000 (17,000) 319,000 24,000 51,000 (10,000) 95,800 (10,000) 4,200 1,200 175,000 119,000 (9,000) 285,000 (6,000) Liabilities Accounts Payable Wages Payable Income Taxes Payable Total Current Liabilities Long-term notes payable Total Liabilities 15,000 9,000 1,400 25,400 29,000 54,400 21,000 5,000 2,600 28,600 69,000 97,600 Equity Common stock, $5 par Retained Earnings Total Equity Total Liabilities and Equity 229,000 35,600 264,600 319,000 179,000 8,400 187,400 285,000 CRUZ.INC Income Statement For the year ended December 11, 2021 488,000 314,000 174,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other operating expenses Total operating expenses Income before tas income taves expense Net income 37,500 39,100 126,700 47.300 17.100 30,000 Additional Information 1 Furniture with an original cost of $55.000 was sold at its book value in 2021. HINT: You must determine the amount of can received 2. New furniture was cured in 2021 for $45.000 cash on which no depreciation is csary because thered at year end 2. All common stock was issued at par value for cash. 3. Cash dividends were declared and paid in 2021 No additional notes payable were issued in 2021. The reduction to long-term notes payable I was from cash payments to reduce the loan balance CRUZ, INC. Statement of Cash Flows For the year ended December 31, 2021 Net Income Deprication Expense 30,000 37,600 (10,000) (10,000) 1,200 (6,000) 42,800 4,000 (1,200) 37,600 53200 83200 A/R net Decrease Inventories Decreased Prepaid Expenses Decrease in A/P Net cash provided by Op Activities Investing Activities: Increase in wages oayable decrease income tax payable deprication expenses Net cash flow operating activities furniture sold furntiture purchased net cash flow investment cashflow finance activity note payable issue of stock dividened paid nat cash flow finance activity change in cash beginning cash endin cash 25,400 (45,000) -19600 (40,000) 50,000 (2,800) 7200 70800 24000 94800 Work for investing Activities Reconstructed Journal Entries Date Account Debit Credit Furniture 119,000 45,000 55,000 Accum Depr 9,000 37,600 29,600 109,000 17,000 Work for Financing Activities Long term NP Common Stock Retained Earnings 8,400 2,800 35,600