GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. PORTER INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2019 $ 71,100 70,000 63,000 2018 $ 6,100 55,000 88,000 6,300 7,900 210,400 157,000 $ 364,400 205,000 (51,000) $ 26,000 8,000 190,000 (17,000) $ 330,000 $ 32,000 20,000 4,000 3,600 37,600 56,000 33,000 65,000 70,600 121,000 240,000 170,000 53,800 $ 364,400 39,000 $ 330,000 Sales PORTER INCORPORATED Income Statement For Year Ended June 30, 2019 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 93,000 109,000 $ 1,102,000 674,000 428,000 $ 202,000 226,000 8,200 234,200 71,690 $ 162,510 Additional Information a. A $32,000 note payable is retired at its $32,000 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 $91,000 cash. d. Received cash for the sale of equipment that had cost $76,000, yielding a $8,200 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. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. < Requirement General Journal >