General Journal Entries:

1. Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

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

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

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

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

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

7. Reconstruct the entry for the issuance of common stock.

8. Reconstruct the entry to record the payment of cash dividends.

9. Close the revenue account(s) to income summary.

10. Close the expense accounts to income summary.

11. Close Income Summary to Retained Earnings.

Choices in the dropdown to fill out the General Journal include,

• 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, $2 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
• 000: No Journal Entry required

Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 164,000 83,000 601,000 848,000 335,000 (158,000) $1,025,000 $ 107,000 71,000 526,000 704,000 299,000 (104,000) $ 899,000 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 87,000 28,000 115,000 71,000 25,000 96,000 592,000 196,000 122,000 $1,025,000 568,000 160,000 75,000 $ 899,000 1 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,792,000 Cost of goods sold 1,086,000 Gross profit 706,000 Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 548,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 Additional Information on Current Year Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends