Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The companys balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

1. Purchased equipment for $36,000 cash.
2. Issued 12,000 shares of common stock for $5 cash per share.
3. Declared and paid $89,000 in cash dividends.

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 December 31, 2017 balances.

1. Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

2. Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any.

3. Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

4. Reconstruct the journal entry for cash paid for other operating expenses, incorporating the change in the related balance sheet account(s), if any.

5. Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any.

6. Reconstruct the entry for the purchase of new equipment.

7. Reconstruct the entry for the issuance of common stock.

8. Reconstruct the entry to record the payment of cash dividends.

9. Close the revenue account(s) to income summary.

10. Close the expense accounts to income summary.

11. Close Income Summary to Retained Earnings.

Prepare the Statement of Cash flows for the year ended December 31, 2017 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.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.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment $ 164,000 83,000 601,000 848,000 335,000 (158,000) $1,025,000 $ 107,000 71,000 526,000 704,000 299,000 (104,000) $ 899,000 Total assets $ 87,000 28,000 115,000 $ 71,000 25,000 96,000 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 592,000 196,000 122,000 $1,025,000 568,000 160,000 75,000 $ 899,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,792,000 Cost of goods sold 1,086,000 Gross profit 706,000 Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 548,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 GOLDEN COMPANY Statement of Cash Flows (Direct Method) For Year Ended December 31, 2017 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: GOLDEN COMPANY Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2017 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities