Help Kelley Company's current year income statement, comparative balance sheets, and additional information follow. 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, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. KELLEY COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 85,700 82.000 284.000 2,300 454,000 201,000 (50,000) $605,000 $ 94,100 63,000 259.000 2,900 419,000 138,000 (59,000) $498,000 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 57,000 18,000 5,000 92.000 167,000 $123,000 11,000 134,000 69,000 203,000 160.000 177,500 52.500 200,000 $605,000 135,000 $ 498,000 KELLEY COMPANY Income Statement For Current Year Ended December 31 Sales cost of goods sold Gross profit $710,000 315,000 395,000 Saved $710,000 315,000 395,000 KEL.I.FY COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 20,000 Other expenses 162.000 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 182,000 (6,100) 206,900 36,000 $170.900 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,100 (details in b). b. Sold equipment costing $53,000, with accumulated depreciation of $29,000, for $17.900 cash. c. Purchased equipment costing $116,000 by paying $38,000 cash and signing a long-term note payable for the balance. d. Borrowed $7,000 cash by signing a short-term note payable. e. Paid $55,000 cash to reduce the long-term notes payable. f. Issued 3,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $97,900. General Journal Requirement General Ledger Trial Balance Indirect Method Direct Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab. Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. Onnel y. VELICICU Qir paru LAS VIVIENUS UIP Requirement ement General Journal General Ledger Thal Balance Direct Method Indirect 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 riscal year. Upon completion, the trial balance tab should agree with the December 31, current year balances. View transaction list Journal entry worksheet 2 3 4 5 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), If any. Enter debits before credits. Debit Credit Account Title Date Dec 31 View general journal Clear entry Record entry 1 of 1 1 of Prev Next !!! Requirement General Journal General Ledger Thal Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended December 31, current year 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. Dates: Dec 31 to: Dec 31 Unadjusted KELLEY COMPANY Statement of Cash Flows (Direct Method) For Current Year Ended December 31 Cash flows from operating activities: TI Cash flows from investing activities: n11 Cash flows from financing activities: 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 Dates: Dec 31 to: Dec 31 Unadjusted KELLEY COMPANY Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities