$ Miller Corp.'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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. MILLER CORPORATION Comparative Balance Sheets December 31 Current Prior Year Year Assets Cash $ 386,000 249,600 Accounts receivable 129,000 110,000 Inventory 631,000 552,000 Total current assets 1,146,000 911,600 Equipment 389,000 338,000 Accum. depreciation-Equipment (183,000) (118,000) Total assets $1,352,000 $1,131,600 Liabilities and Equity Accounts payable $ 118,000 $ 97,000 Income taxes payable 31,000 27,600 Total current liabilities 149,000 124,600 Equity Common stock, $2 par value 748,000 698,000 Paid-in capital in excess of par value, common stock 270,000 195,000 Retained earnings 185,000 114,000 Total liabilities and equity $1,352,000 $1,131,600 $2,319,000 1,405,000 914,000 MILLER CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 65,000 Other expenses 639,000 Income before taxes Income taxes expense Net income 704,000 210,000 64,280 $ 145, 720 Additional Information on Current Year Transactions a. Purchased equipment for $51,000 cash. b. Issued 25,000 shares of common stock for $5 cash per share. c. Declared and paid $74,720 in cash dividends. MILLER COMPANY Trial Balance December 31, 2019 Credit $ Debit 249,600 110,000 552,000 338,000 Account Title Cash Accounts receivable, net Inventory Equipment Accumulated depreciation - Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par - Common Retained earnings 118,000 97,000 27,600 698,000 195,000 114,000 1,249,600 Total 1,249,600 $ 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 Dec 31 1 2 3 4 5 6 7 8 11 > Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 1 2 3 4 5 6 7 8 11 > LLLL Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 1 2 3 4 5 6 7 8 11 > > Reconstruct the journal entry for cash paid for other operating expenses, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 1 2 3 4 5 6 7 8 ..... 11 > Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 1 2 3 4 5 6 7 8 11 > LI Reconstruct the entry to record the payment of cash dividends. Note: Enter debits before credits. Account Title Debit Credit Date Dec 31 MILLER COMPANY Statement of Cash Flows (Direct Method) For Current Year Ended December 31 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: MILLER 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
