GL1201 - Based on Exercise 12-11 LO P1, P2, P3, A1

Use the following financial statements and additional information.

PORTER INC. Comparative Balance Sheets June 30, 2017 and 2016
	2017				2016
Assets
Cash	$	71,100			$	6,100
Accounts receivable, net		70,000				55,000
Inventory		63,000				88,000
Prepaid expenses		6,300				7,900
Total current assets		210,400				157,000
Equipment		205,000				190,000
Accum. depreciationEquipment		(51,000	)			(17,000	)
Total assets	$	364,400			$	330,000
Liabilities and Equity
Accounts payable	$	26,000			$	32,000
Wages payable		8,000				20,000
Income taxes payable		3,600				4,000
Total current liabilities		37,600				56,000
Notes payable (long term)		33,000				65,000
Total liabilities		70,600				121,000
Equity
Common stock, $5 par value		240,000				170,000
Retained earnings		53,800				39,000
Total liabilities and equity	$	364,400			$	330,000

PORTER INC. Income Statement For Year Ended June 30, 2017
Sales				$	1,102,000
Cost of goods sold					674,000
Gross profit					428,000
Operating expenses
Depreciation expense	$	93,000
Other expenses		109,000
Total operating expenses					202,000
					226,000
Other gains (losses)
Gain on sale of equipment					8,200
Income before taxes					234,200
Income taxes expense					71,690
Net income				$	162,510

Additional Information

A $33,000 note payable is retired at its $33,000 carrying (book) value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $91,000 cash.

Received cash for the sale of equipment that had cost $76,000, yielding a $8,200 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2017 balances.

Requirement

General Journal

General Ledger

Trial Balance

Direct Method

Indirect Method

Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2017 balances.

Journal entry worksheet

.....

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.

Date	Account Title	Debit	Credit
Jun 30

Requirement