GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 2018 TWININGS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 61,800 Accounts receivable, net 81,000 Inventory 68,000 Prepaid expenses 6,100 Total current assets 216,900 Equipment 195,000 Accum. depreciation-Equipment (48,000) Total assets $363,900 Liabilities and Equity Accounts payable $ 31,000 Wages payable 7,000 Income taxes payable 4,500 Total current liabilities 42,500 Notes payable (long term) 40,000 Total liabilities 82,500 Equity Common stock, $5 par value 240,000 Retained earnings 41,400 Total liabilities and equity $363,900 $ 10,400 63,000 94,000 7,600 15,000 181,000 (16,000) $340,000 $ 38,000 17,000 5,000 60,000 80,000 140,000 170,000 30,000 $340,000 TWININGS INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 87,000 other expenses 103,000 Total operating expenses $1,038,000 635,000 403,000 190,000 213,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 6,900 219,900 67,310 152,590 $ 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 $85,000 cash. d. Received cash for the sale of equipment that had cost $71,000, yielding a $6,900 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. General General Indirect Requirement Journal Ledger Trial Balance Direct Method 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 No Date Debit Credit View journal entry worksheet Account Title Cash Accounts receivable, net Sales 1 Jun 30 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. account on the General Ledger tab to identify the sources and uses of cash. List cash outflo values. Unadjusted TWININGS 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: Prey 1 of 1 Next Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the indirec reductions to net cash provided by operating activities as negative values. Unadjusted TWININGS 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: View transaction list Journal entry worksheet 2 3 4 5 6 7 8 ... 13 Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any, Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general journal Requirement General Ledger > Proy 1 of 1 !!! Next 80 888 F4 FS 2 # 3 % 5 4 & 7 6 8 View transaction list Journal entry worksheet 4 5 6 7 8 ..... 13 Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits Account Title Debit Credit Date Jun 30 Record entry Clear entry View general Journal Prey 1 of 1 !!! Next 888 09 Du 200 F4 FO FE % @ & # 3 2 4 5 6 7 8 View transaction list Journal entry worksheet 2 3 5 6 8 13 Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits Account Title Debit Credit Date Jun 30 Record entry Clear entry View general Journal Prey 1 of 1 !!! Next BO cdc 008 00 F2 F F4 FS F6 17 5 A $ 4 % 5 2 & 7 3 6 8 View transaction list Journal entry worksheet Prey 1 of 1 !!! Next BO de DU 38 FS F7 $ 4 % 5 & 7 2 Prey 1 of 1 !!! Next > Ora 303 DUL 80 F3 F6 F1 % 5 & 7 2 3 4 0 > 8 View transaction list Journal entry worksheet Prey 1 of 1 Next 20 sa DW 60 F4 F5 FD A # 3 A 69 % 5 & 7 2 6 8 View transaction list Journal entry worksheet Prey 1 of 1 !!! Next ago DOD 80 F3 F4 FS FB F1 @ * $ 4 #3 % 5 2 6 7 8 View transaction llat Journal entry worksheet 1 5 6 7 8 9 ... 13 Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits Account Title Debit Credit Date Jun 30 Record entry Clear entry View general Journal Prey 1 of 1 !!! Next 80 888 ga 2 F3 F4 F $ A % 5 & 7 2 3 4 6 8 View transaction list Journal entry worksheet Close all revenue and gain accounts to income summary. 5 Note: Enter debits before credits Date Account Title Debit Credit Jun 30 Record entry Clear entry View general journal Proy 1 of 1 !!! Next 80 000 Qo0 57 @ A 2 & 7 3 % 5 4 6 8 View transaction list Journal entry worksheet ... 9 10 11 ... 13 Close all expense accounts to income summary. Note: Enter debits before credits: Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Prey Next 30 F3 og Du F? F4 F5 $ # 3 % 5 & 7 2 4 6 8 View transaction list Journal entry worksheet 6 9 10 11 12 13 Close Income Summary to Retained Earnings. Note: Enter debits before credits Account Title Debit Credit Date Jun 30 Record entry Clear entry View general journal Prey Next 80 F3 888 FA F6 17 F @ $ 2 # 3 4 & 7 5 6 8 View transaction list Journal entry worksheet 1 6 7 8 9 10 11 12 13 Reconstruct the journal entry for cash dividends pald. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Requirement General Ledger > Prey 1 of 1 Next 90 80 F3 888 FA DU F FS F6 77 A % 5 & 7 2 3 4 6 8