GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. FIELDS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets $.91,000 76,000 65,000 5,900 $ 32,200 59,000 90,000 Cash Accounts receivable, net Inventory Prepaid expenses Total current 7,400 188,600 175,000 (16,000) 237,900 189,000 (48,000) $378,900 Equipment Accum. depreciation-Equipment Total assets $347,600 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 28,000 8,000 4,100 40,100 35,000 75,100 $ 34,000 20,000 4,600 58,600 Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 70,000 128,600 250,000 53,800 $378,900 180,000 39,000 $347,600 Total liabilities and equity FIELDS INC. Income Statement For Year Ended June 30, 2019 Sales $998,e00 611,000 387,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $83,000 99,000 182,000 205.000 Notes payable (long term) Total liabilities 35,000 75,100 70,000 128,600 Equity Common stock, $5 par value Retained earnings 250,000 180,e00 39,000 53,800 $378,900 Total liabilities and equity $347,600 FIELDS INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $998,000 611,000 387,000 $83,000 99,000 182,000 205,000 Other gains (losses) Gain on sale of equipment 6,100 211,100 64,620 Income before taxes Income taxes expense Net income $146,480 Additional Information a. A $35,000 note payable is retired at its $35,000 carrylng (book) value in exchange for cash. b. The only changes affecting retained earnings are net income nd 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. Answer is not complete. General Indirect Method General Journal Trial Balance Direct Method Requirement Ledger Using the income statement, the comparative balance sheet, and the additional information given above, r Prev Saved Check my work mode : This shows what is correct or incorrect for the work y c. New equipment is acquired for $81,000 cash. d. Received cash for the sale of equipment that had cost $67000, 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. Answer is not complete. General Ledger Indirect Method General Journal Requirement Direct Method Trial Balance 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. General Journal> 1 of 1 Prev Check my work mode : This shows what is correct or incorrect for the wor entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agr the June 30, 2019 balances. Credit Debit Account Title No Date Cash Jun 30 17,000 O Accounts receivable, net Sales Cost of goods sold Accounts payable Jun 30 6,000 Inventory Cash Depreciation expense Accumulated depreciation - Equipment Jun 30 Other expenses Jun 30 Wages payable Prepaid expenses Cash Cash Jun 30 Accumulated depreciation - Equipment Equipment Gain on sale of equipment Income taxes expense Jun 30 Income taxes payable Cash 35,000 O Notes payable (long-term) Jun 30 1 of 1 Prev 35,000 Jun 30 Notes payable (long-term) 35,000 Cash 8. Equipment Jun 30 Cash 9. Jun 30 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 Income summary 12 Jun 30 Retained earnings Retained earnings Jun 30 Cash Prev 1 of 1. 10 13 General Ledger Account Accounts receivable, net Cash Balance Credit Debit Date No. Balance Debit Credit. Date No. 59,000 Jun 30 32,200 Jun 30 76,000 17,000 Jun 30 35,000 (2,800) Jun 30 Prepaid expenses Inventory Balance Credit Debit Date No. Credit Balance Debit Date No. 7,400 Jun 30 90,000 Jun 30 Accumulated depreciation - Equipment Equipment Credit Balance Debit Date No. Balance Debit Credit Date No. 16,000 Jun 30 175,000 Jun 30 Wages payable Accounts payable Balance Credit Date Debit No. Balance Credit Debit Date No. 20,000 Jun 30 34,000 Jun 30 28,000 6,000 Jun 30 12 Notes payable (long-term) Income taxes payable Balance Debit Credit Date No. Credit Balance Debit Date No. 70,000 Jun 30 4,600 Jun 30 35,000 35,000 Jun 30 7. Retained earnings Common stock, $5 par value Balance Debit Credit Date Balance No. Credit Debit Date No. 39,000 Jun 30 180,000 Jun 30 Trial Balance > vaiues. Unadjusted FIELDS 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 financing activities: Check my work mode : This shows what is correct or in Indirect Method General Journal General Ledger Trial Balance Direct Method Requirement ............... Prepare the operating activities section of the statement of cash flows using the indirect r reductions to net cash provided by operating activities as negative values. Unadjusted FIELDS 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: