GL1201 - Based on Exercise 12-11 LO P1, P2, P3, A1
Use the following financial statements and additional information.
MYCONOS INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $819,000 501,000 318,000 Depreciation expense $69,000 79,000 Other expenses Total operating expenses 148,000 170,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,500 173,500 53,110 $120,390 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 $68,000 cash d. Received cash for the sale of equipment that had cost $56,000, yielding a $3,500 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. View transaction list Journal entry worksheet 13 4 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any Note: Enter debits before credits. Credit Account Title Debit Date Jun 30 Record entry View general journal Clear entry View transaction list X: Import a new list 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. Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any 4 X: Import a new list Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any 4 5 Reconstruct the journal entry for the sale of equipment at a gain, 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. Reconstruct the entry to record the retirement of the $40,000 note payable at its $40,000 carrying (book) value in exchange for cash. 7 View transaction list X: Import a new list $40,000 note payable at its $40,000 carrying (book) value in exchange for cash. Reconstruct the entry for the purchase of new 8 equipment 9 Reconstruct the entry for the issuance of common stock. 10 Close all revenue and gain accounts to income summary. 11 Close all expense accounts to income summary. 12 Close Income Summary to Retained Earnings 13 Reconstruct the journal entry for cash dividends paid. Unadjusted MYCONOS INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities: Cash flows from investing activities Cash flows from financing activities: General General Ledger Indirect Method Trial Balance Direct Method Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Unadjusted MYCONOS INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities
