Use the following financial statements and additional information. DELRAY INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 $ 84,200 70,000 71,000 5,300 230,500 163,000 (42,000) $351,500 $ 47,000 55,000 98,000 6,600 206,600 151,000 (14,000) $343,600 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 $ 34,000 7,000 4,100 45, 100 45,000 90, 100 $ 42,000 17,000 4,600 63,600 90,000 153,600 220,000 41,400 $351,500 160,000 30,000 $343, 600 DELRAY INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold $852,000 521.000 DELRAY INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $71,00 Other expenses 83,000 Total operating expenses $852,000 521,000 331,000 154,000 177,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,999 189,900 55, 370 $125,530 Additional Information 0 A $45,000 note payable is retired at its $45,000 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 $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 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. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2016 and June 30, 2017 Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2017 using the direct method. View transaction list Journal entry worksheet Reconstruct the journal entry for the sale of equipment at a gain, 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 View transaction list Journal entry worksheet Reconstruct the journal entry for income taxes expense, 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 Journal entry worksheet Journal entry worksheet Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Begin by selecting "Post-closing" from the drop down menu. Verify that each balance agrees with the June 30, 2017 balance sheet above. Unadjusted - DELRAY INC. Trial Balance June 30, 2017 Account Title Debit Credit 47,000 55,000 98,000 6,600 151,000 Cash Accounts receivable, net inventory Prepaid expenses Equipment Accumulated depreciation - Equipment Accounts payable Wages payable income taxes payable Notes payable (long-term) Common stock, $5 par value Retained earnings 14,000 42,000 17,000 4,600 90,000 160,000 30,000 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2017 using the Direct Method. Hint Use the account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negativ values. Unadjusted DELRAY INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities GL1201 - Based on Exercise 12-11 LO P1, P2, P3, A1 Use the following financial statements and additional information. DELRAY INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 $ 84,200 70,000 71,000 5,300 230, 500 163,000 (42,000) $351,500 $ 47,000 55,000 98,000 6,600 206,600 151,000 _(14,000) $343,600 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 $ 34,000 7,000 4,100 45, 100 45,000 90,100 $ 42,000 17,000 4,600 63,600 90,000 153,600 220,000 41,400 $351,500 160,000 30,000 $343, 600 No Date Account Title Debit Credit Jun 30 Cash Jun 30 Cash Jun 30 Depreciation expense Jun 30 Cash Jun 30 Gain on sale of equipment Jun 30 Income taxes expense Jun 30 Notes payable (short-term) Cash Jun 30 Equipment Cash Jun 30 Common stock, S5 par value Cash 10 Jun 30 Income summary Prex 1 of 1 ! Next > search General Ledger Account Cash Accounts receivable, net No. Debit Credit No Date Debit Credit Date Jun 30 Balance 47,000 Balance 55,000 Inventory Prepaid expenses Debit Credit No. Debit Credit Date Jun 29 Balance 98 000 Date Jun 29 Balance 6,600 Equipment No. Debit Date Jun 29 Debit Credit Credit Balance 151.000 Balance Accumulated depreciation - Equipment Date Debit Credit Jun 29 Balance 14.000 Wages payable No. Accounts payable Debit Credit Date Debit credite Balance Date Jun 29 Balance No Date Debit Credit Balance 17,000 42.000 Jun 29 Income taxes payable No No. Date Debit Notes payable (long-term) Debit Credit Debit Credit Date Jun 29 Credit Balance Balance Date Balance 90,000 4.600 Jun 29 Common stock, 55 par value Retained earnings No. / Debit Credit No. Debit Credit Date Jun 29 Balance 160,000 Date Jun 29 Balance 30,000 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Begin by selecting "Post-closing" from the drop-down menu. Verify that each balance agrees with the June 30, 2017 balance sheet above. Unadjusted - DELRAY INC. Trial Balance June 30, 2017 Account Title Credit Cash Debit 47,000 55,000 98,000 6.600 151,000 Accounts receivable, net inventory Prepaid expenses SEquipment Accumulated depreciation - Equipment Accounts payable Wages payable Income taxes payable Notes payable (long-term) Common stock, 55 par value Retained earnings Total 14,000 42,000 17,000 4,600 90,000 160,000 30,000 357,600 357 600 S a. A $45,000 note payable is retired at its $45,000 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 $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000. yielding a $3,900 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. 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 - DELRAY INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to not cash provided by operating activities