GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. EDMUNDS INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, S5 par value Retained earnings Total liabilities and equity $146,400 68,000 69,000 4,700 288, 100 140,000 (36,000) $392,100 $ 95, 900 53,000 96,000 5, 900 250, 800 130,000 (12, 000) $368, 800 $ 33,000 8,000 4,300 45,300 43,000 8,300 $ 40,000 20,000 4, 800 647 800 85,000 119,00 250.000 53,800 $392, 100 180,000 39.000 5368, 800 EDMUNDS INC Income Statement For Year Ended June 10, 2019 Sales Cost of goods sold Gross profit 5742,000 454,000 EDMUNDS INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $64, 60e Other expenses 72,000 Total operating expenses $742,000 454,000 288,000 136,000 152,000 other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,500 154,500 47,290 $107,210 Additional Information a. A $43.000 note payable is retired at its $43,000 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 $63,000 cash. d. Received cash for the sale of equipment that had cost $53.000. yielding a $2.500 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 General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and du Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Indirect Method tab - Prepare the reconciliation to the indirect method Journal entry worksheet Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits Date Account Title Debit Credit Jun 30 Clear entry View general journal Journal entry worksheet 4 5 6 7 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 Date Account Title Debit Credit Jun 30 econd onary Clear entry View general journal Journal entry worksheet
