Smith 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. SMITH CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 175,000 87,000 604,000 866,000 347,000 (164,000) $1,049,000 $ 117,200 74,000 528,00 719, 200 302, eee (105,000) $ 916,200 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 89,000 28,00 117,000 $ 73,000 25,200 98,200 604,000 201,200 127,000 $1,049, een 578,000 162,00 78,000 $ 916, 200 $1,828,000 1,108,000 720,000 SMITH CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 59,000 Other expenses 504, eee Income before taxes Income taxes expense Net income 563,000 157,000 48,060 $ 108,940 Additional Information on Current Year Transactions a. Purchased equipment for $45,000 cash. b. Issued 13,000 shares of common stock for $5 cash per share. c. Declared and paid $59,940 in cash dividends. General Requirement General Ledger Trial Balance Direct Method Journal 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 fiscal year. Upon completion, the trial balance tab should agree with the December 31, current year balances. View transaction list