STREAMLINE INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets $100,200 73,000 63,000 4,900 241,100 $44,100 57,000 88,000 6,100 195,200 136,000 (12,000) Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment 147,000 (36,000) $352,100 $319,200 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities 26,000 7,000 32,000 17,000 4,700 5,200 54 ,200 65,000 119,200 37,700 33,000 70,700 Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 240,000 41,400 170,000 30,000 Total liabilities and equity $352,100 $319,200 s STREAMLINE INC Income Statement For Year Ended June 30, 2017 Sales $772,000 Cost of goods sold Gross profit 472,000 300,000 xpenses e $66,000 74,000 xpense ornenae expe Other Total operating expenses 140,000 160,000 Other gains (losses) Gain on sale of equipment 2,900 162,900 49,860 Income before taxes Income taxes expense 1 of 1 Prev Next STREAMLINE INC Income Statement For Year Ended June 30, 2017 Sales $772,000 472,000 300,000 Cost of goods sold Gross profit nenses Depreciation $66,000 pense 74,000 Other expenses Total operating expenses 140,000 160,000 Other gains (losses) Gain on sale of equipment Income before taxes 2,900 162,900 49,860 Income taxes expense $113,040 Net income Additional Information a. A $33,000 note payable is retired at its $33,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $65,000 cash. d. Received cash for the sale of equipment that had cost $54,000, yielding a $2,900 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. Indirect Method General General Requirement Trial Balance Direct Method Journal Ledger Prepare the Statement of Cash flows for the year ended June 30, 2017 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 STREAMLINE INC. 1 of 1 Prey Next 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, 2017 balances. View transaction list Journal entry worksheet 8 13 1 2 3 4 5 6 7 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 s Jun 30 Record entry Clear entry View general journal Requirement General Ledger 1 of 1 Prev Next Unadjusted STREAMLINE INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities: Cash paid for operating expenses Cash paid for income taxes Cash paid for merchandise Net cash provided by operating activities Cash flows from investing activities: Cash paid for equipment (65,000) Cash received from sale of equipment 14,900 (50,100) Cash flows from financing activities: Cash paid to retire notes (32,000) 70,000 Cash received from stock issuance Cash paid for dividends (101,640) (63,640) Net decrease in cash (113,740) Cash balance at prior year-end 44,100 Cash balance at current year-end (69,640) 1 of 1 Prev Next General Journal General Indirect Method Requirement Trial Balance Direct Method Ledger 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 STREAMLINE INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities: Net income 113,040 Adjustments to reconcile net income to net cash provided by operating activities: $ Depreciation expense 66,000 Gain on sale of equipment (2,900) Decrease in pre paid expenses 1,200 (16,000) Increase in accounts receivable 25,000 Decrease in inventory Decrease in accounts payable (6,000) Decrease in wages payable (10,000) Decrease (500) income taxes payable 56,800 Net cash provided by operating activities $ 169,840 Direct Method Indirect Method Prev 1 of 1 Next