***I WOULD JUST LIKE TO FOLLOW-UP REGARDING THE PROBLEM THAT I SENT LAST NOV. 25...CHEGG DID NOT ANSWER IT YET TILL NOW***

*** This is the ONLY and COMPLETE INFORMATION that was given in the said problem ***

Golden Corp., a merchandiser, recently completed its 2015 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.

GOLDEN COMPANY
Comparative Balance Sheets
December 31, 2015 and 2014
		2015		2014
Assets
Cash		$164,000		$107,000
Accounts receivable, net		83,000		71,000
Inventory		601,000		526,000
Equipment		335,000		299,000
Accum. depreciationEquipment		(158,000)		(104,000)
Total assets		$1,025,000		$899,000
Liabilities and Equity
Accounts payable		$87,000		$71,000
Income taxes payable		28,000		25,000
Common stock, $2 par value		592,000		568,000
Paid-in capital in excess of par, common stock		196,000		160,000
Retained earnings		122,000		75,000
Total liabilities and equity		$1,025,000		$899,000
GOLDEN COMPANY
Income Statement
For Year Ended December 31, 2015
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
Total operating expenses				548,000
Income before taxes				158,000
Income taxes expense				22,000
Net income				$136,000

Additional Information on Year 2015 Transactions:
a.	Purchased equipment for $36,000 cash.
b.	Issued 12,000 shares of common stock for $5 cash per share.
c.	Declared and paid $89,000 in cash dividends.

• Requirement:
• General Journal
• General Ledger
• Trial Balance
• Direct Method
• Indirect Method

1. General Journal - Reconstruct the entries to summarize the activity between December 31, 2014 and December 31, 2015.

- 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, 2015 balances.

2. General Ledger - As your reconstructed entries are recorded, you will explain the changes in the beginning and ending balances for each account.

3. Trial Balance - Begin by selecting "Post-closing". Verify that each balance agrees with the December 31 balance sheet above.

4. Direct Method - Prepare the Statement of Cash flows for the year ended December 31, 2015 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.

5. Indirect Method tab - Prepare the reconciliation to the 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.