• 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 operating expenses, incorporating the change in the related balance sheet account(s), if any.

• 5

  Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any.

• 6

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

• 7

  Reconstruct the entry to record the retirement of the $35,000 note payable at its $35,000 carrying (book) value in exchange for cash.

• 8

  Reconstruct the entry for the purchase of new equipment.

• 9

  Reconstruct the entry for the issuance of common stock.

• 10

  Close all revenue and gain accounts to income summary.

• 11

  Close all expense accounts to income summary.

• 12

  Close Income Summary to Retained Earnings.

• 13

  Reconstruct the journal entry for cash dividends paid.

GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. ZEPHYR INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 79,400 73, eee 65, eee 6,400 223, see 288,888 (51, eee) $380,880 $ 15,200 57,000 90,000 8,800 170,200 193,888 (17,880) $346,200 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 28,eee 6,eee 3,800 37, see 35, eee 72,8ee $ 34,000 16,800 4,200 54,200 70,000 124,200 250, eee 58, eee $380,888 180,000 42,800 $346,200 ZEPHYR INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 95,000 Other expenses 111,000 Total operating expenses $1,124,000 687,000 437,000 286,000 231,600 other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 8,700 239,700 73,370 $ 166,330 Additional Information a. A $35,000 note payable is retired at its $35,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends pald. c. New equipment is acquired for $93,000 cash. d. Received cash for the sale of equipment that had cost $78,000, ylelding a $8,700 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the Income statement f. All purchases and sales of Inventory are on credit General Journal Indirect Method General Requirement Ledger Trial Balance Direct 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 fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances View transaction list Journal entry worksheet ..... 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. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2019 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. Unadjusted ZEPHYR INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Requirement General Journal General Ledger Trial Balance Direct Method 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. Unadjusted ZEPHYR INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities