Use the following financial statements and additional information.

IKIBAN INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018
	2019	2018
Assets
Cash	$ 87,500	$ 44,000
Accounts receivable, net	65,000	51,000
Inventory	63,800	86,500
Prepaid expenses	4,400	5,400
Total current assets	220,700	186,900
Equipment	124,000	115,000
Accumulated depreciationEquipment	(27,000)	(9,000)
Total assets	$ 317,700	$ 292,900
Liabilities and Equity
Accounts payable	$ 25,000	$ 30,000
Wages payable	6,000	15,000
Income taxes payable	3,400	3,800
Total current liabilities	34,400	48,800
Notes payable (long term)	30,000	60,000
Total liabilities	64,400	108,800
Equity
Common stock, $5 par value	220,000	160,000
Retained earnings	33,300	24,100
Total liabilities and equity	$ 317,700	$ 292,900

IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2019
Sales		$ 678,000
Cost of goods sold		411,000
Gross profit		267,000
Operating expenses
Depreciation expense	$ 58,600
Other expenses	67,000
Total operating expenses		125,600
		141,400
Other gains (losses)
Gain on sale of equipment		2,000
Income before taxes		143,400
Income taxes expense		43,890
Net income		$ 99,510

Additional Information

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $57,600 cash.

Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

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. Journal entry worksheet Note: Enter debits before credits