GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 2018 FIELDS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 91,000 Accounts receivable, net 76,000 Inventory 65,000 Prepaid expenses 5,900 Total current assets 237,900 Equipment 189,000 Accum. depreciation-Equipment (48,000) Total assets $378,900 Liabilities and Equity Accounts payable $ 28,000 Wages payable 8,000 Income taxes payable 4,100 Total current liabilities 40,100 Notes payable (long term) 35,000 Total liabilities 75,100 Equity Common stock, $5 par value 250,000 Retained earnings 53,800 Total liabilities and equity $378,900 $ 32,200 59,000 90,000 7,400 188,600 175,000 (16,000) $347,600 $ 34,000 20,000 4,600 58,600 70,000 128,600 180,000 39,000 $347,600 FIELDS INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $83,000 Other expenses 99,000 Total operating expenses $998,000 611,000 387,000 182,000 205,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 6,100 211,100 64,620 $146,480 Additional Information a. A $35,000 note payable is retired at its $35,000 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 $81,000 cash. d. Received cash for the sale of equipment that had cost $67,000, yielding a $6,100 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. No Account Title Debit Credit Date Jun 30 Cash Accounts receivable, net Sales Jun 30 Cost of goods sold Accounts payable Inventory Cash Jun 30 Depreciation expense Accumulated depreciation - Equipment Jun 30 Other expenses Wages payable Prepaid expenses Cash OOOOOOOOOOOOO Jun 30 Cash Accumulated depreciation - Equipment Equipment Gain on sale of equipment Jun 30 Income taxes expense Income taxes payable Cash Jun 30 Notes payable (long-term) Cash Jun 30 Equipment Cash Jun 30 Cash Cash Common stock, $5 par value Jun 30 Sales Gain on sale of equipment Income summary 11 Jun 30 Income summary Cost of goods sold Depreciation expense Other expenses Income taxes expense Jun 30 Income summary Retained earnings 13 Jun 30 Retained earnings Cash