The following financial statements and additional information are reported. TIRANINE Comparative Balance Sheets June 30, 2019 and 2018 2018 $ 77,988 89, cee 79 888 6, Bee 252,700 140.630 (35,000) $357, 788 $ 68,eee 67,eee 118, see 8,60e 246, lee 131.288 17. eee) $360, 100 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, 55 par value Retained earnings Total liabilities and equity $ 41, eee 7,6ee 5, Bee 53,6ee 33, 280 86,898 $ 54, eee 18.2ee 17,808 79,208 76. eae 155, 280 252, eee 18,9ee $357,700 176.888 28,900 $360, 180 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,689 Other expenses 83,eee Total operating expenses $758, eee 427,eee 331, eee 157, 682 173,480 3.600 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 127.ee 45.498 $131.518 Additional Information 4. A $42.800 note payable is retired at its $42.800 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 $73.600 cash. d. Received cash for the sale of equipment that had cost $64.600, ylelding a $3,600 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. 1. All purchases and sales of inventory are on credit The following financial statements and additional information are reported. TIRANINE Comparative Balance Sheets June 30, 2019 and 2018 2018 $ 77,988 89, cee 79 888 6, Bee 252,700 140.630 (35,000) $357, 788 $ 68,eee 67,eee 118, see 8,60e 246, lee 131.288 17. eee) $360, 100 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, 55 par value Retained earnings Total liabilities and equity $ 41, eee 7,6ee 5, Bee 53,6ee 33, 280 86,898 $ 54, eee 18.2ee 17,808 79,208 76. eae 155, 280 252, eee 18,9ee $357,700 176.888 28,900 $360, 180 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,689 Other expenses 83,eee Total operating expenses $758, eee 427,eee 331, eee 157, 682 173,480 3.600 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 127.ee 45.498 $131.518 Additional Information 4. A $42.800 note payable is retired at its $42.800 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 $73.600 cash. d. Received cash for the sale of equipment that had cost $64.600, ylelding a $3,600 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. 1. All purchases and sales of inventory are on credit