GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional Information SANCHEZ INCORPORATED Comparative Balance sheets June 30, 2019 and 2018 2019 2018 $ 101,200 68, eee 69,000 5,780 244,000 179,000 (45,000) $ 378,000 545,980 53,000 96,00 7,100 205,000 166, (15) eee) $ 356,00 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Incone taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity common stocky S5 par value Retained earnings Total liabilities and equity ces $ 33, cee 7, eee 3,600 43,600 43,000 86,600 5e,eee 17,000 4,0 61,000 $5,000 146,680 250,000 41,400 $1378,000 180,000 3e,eee $ 356,000 SANCHEZ INCORPORATED Income statement For Year Ended: June 30, 2019 Sales cost of goods sold Gross profit Operating expenses Depreciation expense $ 77,000 other expenses 92,000 Total operating expenses 5 940,000 575,eee 365,000 $ 170,000 195,00 other gains (Losses) Gain on sale of equipment Incone before taxes Income taxes expense Net Income 5,280 200,200 61,280 $ 138,920 Additional Information ..A 542.000 note payable is retired at its $42.000 carrying (book) value in exchange for cash b. The only changes affecting retained earnings are net income and cash dividends pald c. New equipment is acquired for $75,000 cash d. Received cash for the sale of equipment that had cost S62.000. yielding a $5,200 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 General Journal Requirement General Ledger Indirect Method Trial Balance Direct Method Using the income statement, the comparative balance sheet, and the additional information give the summarized activity of the current fiscal year. Upon completion, the trial balance tab balances View transaction list Journal entry worksheet Journal entry worksheet > 3 Journal entry worksheet Journal entry worksheet Reconstruct the journal entry for cash paid for operating expenses, 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 joumal 4 6 7 8 2 3 13 8 1 RE Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any. ote: Enter debits before credits Date Account Title Debit Credit June 30 Record entry Clear entry View general journal Journal entry worksheet > 13 4 5 7 3 6 8 Journal entry worksheet 8 13 Reconstruct the entry to record the retirement of the $42,000 note payable at its $42,000 carrying (book) value in exchange for cash. Note: Enter debits before credits. Date Account Title Debit Credit June 30 Record entry Clear entry View general journal K 12 3 5 5 6 13 7 Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal w transaction list Journal entry worksheet K 1 4 5 6 7 8 CO 13 SEER EN Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Date Account Title Debit Credit June 30 Record entry Clear entry View general journal Requirement General Ledger > View transaction list Journal entry worksheet balances. View transaction list Journal entry worksheet jew transaction list Journal entry worksheet View transaction list Journal entry worksheet ..... 6 7 8 9 10 11 12 og Reconstruct the journal entry for cash dividends paid. Note: Enter debits before credits Date Account Title Debit Credit June 30 Record entry Clear entry View general journal
