GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information points eBook 2018 FAIRHAVEN INC. Comparative Balance Sheets June 30, 2019 and 2018 Assets 2019 Cash $ 77.809 Accounts receivable, net 83.ee Inventory 69,000 Prepaid expenses 6,200 Total current assets 235,209 Equipment 199,000 Accum. depreciation-Equipment (51,600 Total assets 3383.200 Liabilities and Equity Accounts payable $ 33.000 Wages payable 7.ee Income taxes payable 4.700 Total current liabilities 44,700 Notes payable (long term) 13.089 Total liabilities 17,700 Equity Common stock, 35 par value 250,000 Retained earnings 45, 5 Total liabilities and equity $385,200 $ 25, see 65,000 96.000 7,700 194,200 184,000 (12.000 3361,200 References $ 40, een 13.00 15.200 63,200 LES,200 140,200 11. 1739.000 $161,200 FAIRHAVEN INC Income Statement op Year Ended une se, 2019 411,000 Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Total operating expenses $89.00 105, Other gains (lasses) bain on sale of equipment Ince before takes Help Save & AFATRHAVEN INC. Income Statement Year Ended Dune 30, 2019 Sales Cost of goods sola Gross profit Operating expens Depreciation experise Other expenses Total operating expenses $1,059,000 648,000 411,000 OOK $ 89,000 105,000 194,000 217,600 other gains (Losses) Gain on sale of equipment before taxes axes expense int 7300 224,300 68,660 155,640 $ Additional Information WA $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 pard c. New equipment is acquired for $87,000 cash. d. Received cash for the sale of equipment that had cost $72,000 yielding a $7,300 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement All purchases and sales of inventory are on credit. General Ledger Indirect Method General Journal mal Balance Direct Method Requirement the Uning the income statement, the comparative balance sheet, and the adonar Mormation above the summarized activity of the current fiscal year. Upon completion, the trial balance tab share balance View transaction of Additional Information Check my work 15 points 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 $87,000 cash. d. Received cash for the sale of equipment that had cost $72,000 yielding a $7,300 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 eBook Requirement General Journal General Ledger Trial Balance Direct Method Indirect Print 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 10, 2018 balances. References View transaction list Journal entry worksheet 4 5 6 3 7 8 2 ..... 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. Debt Credit Account Title Date Jun 30 Next >
