GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 2018 ARNOLD INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 77,900 Accounts receivable, net 73,000 Inventory 63,000 Prepaid expenses 5,800 Total current assets 219, 700 Equipment 186,000 Accum. depreciation-Equipment (45,000) Total assets $360, 700 Liabilities and Equity Accounts payable $ 26,000 Wages payable 8,000 Income taxes payable 4,000 Total current liabilities 38,000 Notes payable (long term) 33,000 Total liabilities 71,000 Equity Common stock, $5 par value 240,000 Retained earnings 49,700 Total liabilities and equity $360, 700 $ 17,100 57,000 88,000 7,300 169, 400 172,000 (15,000) $326,400 $ 32,000 19,000 4,400 55,400 65,000 120, 400 170,000 36,000 $326,400 ARNOLD INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $81,000 Other expenses 97,000 Total operating expenses $978,000 599,000 379,000 178,000 201,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 5,800 206,800 63,300 $143, 500 Additional Information a. A $33,000 note payable is retired at its $33,000 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 $79,000 cash. d. Received cash for the sale of equipment that had cost $65,000, yielding a $5,800 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 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, 2019 balances. View transaction list 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. Debit Credit Date Jun 30 Account Title Cash Accounts receivable, net Sales Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint T-account on the General Ledger tab to identify the sources and uses of cash. List cash outflows a values. Unadjusted ARNOLD INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from investing activities: ...... Cash flows from financing activities: Trial Balance Indirect Method > Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the indirect method. to net cash provided by operating activities as negative values. Unadjusted ARNOLD INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: ARNOLD INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities:
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, 2019 balances. View transaction list 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. Debit Credit Date Jun 30 Account Title Cash Accounts receivable, net Sales Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint T-account on the General Ledger tab to identify the sources and uses of cash. List cash outflows a values. Unadjusted ARNOLD INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from investing activities: ...... Cash flows from financing activities: Trial Balance Indirect Method > Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the indirect method. to net cash provided by operating activities as negative values. Unadjusted ARNOLD INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: ARNOLD INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities:
