Please provide the necessary entries and calculation
2020 $ 47,000 116,000 64,000 9,000 1,489,000 89,000 130,000 21,000 Cash Short-term (trading) investments Accounts receivable Inventory Prepaid expenses Total assets.. Accounts payable Salaries payable.......... Interest payable Net sales, all on credit .... Cost of goods sold Operating expenses.. Operating income...... Gain (loss) on sale of equipment... Interest expense... Income tax expense Net income ...... Common shares (no preferred) Retained earnings.......... 2021 $ 21,000 28,000 102,000 86,000 11,000 1,503,000 92,000 100,500 12,500 877,000 576,000 142,000 159,000 6,000 36,000 20,000 109,000 420,000 153,000 NOTE: Operating expenses include $17,000 of depreciation expense in 2021. PP exchanged equipment that is uses in its manufacturing process for similar equipment from Steller Inc., another food manufacturer, on November 14, 2021. The equipment will be used for similar purpose but is expected to improve the efficiency, allow the company to manufacture more products in a shorter time period. PP's equipment had an original cost of $50,000, accumulated depreciation of $31,250 and a fair value of $25,000. Steller's equipment had an original cost of $55,000, accumulated depreciation of $22,000 and a fair value of $28,000. PP also paid $3,000 in cash. Depreciation has been recorded up to the date of exchange. (approx. 8 marks) a 2020 $ 47,000 116,000 64,000 9,000 1,489,000 89,000 130,000 21,000 Cash Short-term (trading) investments Accounts receivable Inventory Prepaid expenses Total assets.. Accounts payable Salaries payable.......... Interest payable Net sales, all on credit .... Cost of goods sold Operating expenses.. Operating income...... Gain (loss) on sale of equipment... Interest expense... Income tax expense Net income ...... Common shares (no preferred) Retained earnings.......... 2021 $ 21,000 28,000 102,000 86,000 11,000 1,503,000 92,000 100,500 12,500 877,000 576,000 142,000 159,000 6,000 36,000 20,000 109,000 420,000 153,000 NOTE: Operating expenses include $17,000 of depreciation expense in 2021. PP exchanged equipment that is uses in its manufacturing process for similar equipment from Steller Inc., another food manufacturer, on November 14, 2021. The equipment will be used for similar purpose but is expected to improve the efficiency, allow the company to manufacture more products in a shorter time period. PP's equipment had an original cost of $50,000, accumulated depreciation of $31,250 and a fair value of $25,000. Steller's equipment had an original cost of $55,000, accumulated depreciation of $22,000 and a fair value of $28,000. PP also paid $3,000 in cash. Depreciation has been recorded up to the date of exchange. (approx. 8 marks) a
