GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional Information. KENDALL INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 94,99 78,000 68,000 6,600 246, 600 215,000 (54.eee) $407,600 $ 29,400 61,000 94, eee 8,200 192,600 199,000 (18.00) $373,600 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, $5 par value Retained earnings Total liabilities and equity $ 31,200 7,000 4,100 42,100 40,000 82,100 $ 38,000 18,00 4,600 60,600 se.ee 140,600 280,00 45,500 $427,680 2ee, mee 33,00 $373,600 KENDALL INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 99, eee Other expenses 115, eee Total operating expenses $1,169. eee 715,000 454,00 214, eee 240, eee Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 9,800 249,800 76,462 $ 173, 340 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 cas c. New equipment is acquired for $97,000 cash. d. Received cash for the sale of equipment that had cost $81,000, yielding a $9,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the Income statement. 1. All purchases and sales of Inventory are on credit. Requirement Requirement General General Journal General Secre Trial Balance Direct Method Indirect Method Ledger 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 2 3 4 5 6 7 8 ..... 13 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. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general journal 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 Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Unadjusted - KENDALL 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: 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. Enter reductions to net cash provided by operating activities as negative values. Unadjusted KENDALL 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
