Use the following financial statements and additional information. LAFAYETTE INCORPORATED Comparative Balance Sheets Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment June 30, 2019 and 2018 2019 2018 $ 90,400 73,000 $ 31,100 57,000 63,000 88,000 5,400 6,700 231,800 182,800 166,000 Accumulated 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 Sales Cost of goods sold LAFAYETTE INCORPORATED Income Statement For Year Ended June 30, 2019 $ 355,800 (42,000) $ 26,000 154,000 (14,000) $ 322,800 $ 32,000 18,000 7,000 4,300 4,800 37,300. 54,800 33,000 65,000 70,300 119,800 240,000 45,500 $ 355,800 170,000 33,000 $ 322,800 $ 869,000 531,000 338,000 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 72,000 85,000 $ 157,000 181,000 4,100 185,100 56,660 $128,440 ATLUSE COLEMEN Sales Cost of goods sold For Year Ended June 30, 2019 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 72,000 85,000 $ 869,000 531,000 338,000 $ 157,000 181,000 4,100 185,100 56,660 $ 128,440 Additional Information a. A $32,000 note payable is retired at its $32,000 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 $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab- Prepare the reconciliation to the indirect method. General Journal > Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Using the income statement, the comparative balance sheet, and the additional information given the summarized activity of the current fiscal year. Upon completion, the trial balance tab sh balances. View transaction list Journal entry worksheet < 2 3 4 5 9 7 8 13 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 June 30 Account Title Debit Credit Record entry Clear entry View general journal a. A $32,000 note payable is retired at its $32,000 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 $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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 Using the income statement, the comparative balance sheet, and the additional information given abo the summarized activity of the current fiscal year. Upon completion, the trial balance tab shoulc balances. View transaction list Journal entry worksheet < 2 3 4 5 6 7 8 13 Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date June 30 Account Title Debit Credit Record entry Clear entry View general journal Prey a. A $32,000 note payable is retired at its $32,000 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 $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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 Using the income statement, the comparative balance sheet, and the additional information given above, the summarized activity of the current fiscal year. Upon completion, the trial balance tab should ag balances. View transaction list Journal entry worksheet < 2 3 4 5 9 7 8 13 Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date June 30 Account Title Debit Credit Record entry Clear entry View general journal a. A $32,000 note payable is retired at its $32,000 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 $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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 Using the income statement, the comparative balance sheet, and the additional information given above, rec the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree balances. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 13 > Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date June 30 Account Title Debit Credit Record entry Clear entry View general journal Prey 1 o es b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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 Using the income statement, the comparative balance sheet, and the additional information given above, re the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agre balances. View transaction list Journal entry worksheet 2 3 4 6 7 8 13 ..... 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 June 30 Account Title Debit Credit Record entry Clear entry View general journal a. A $32,000 note payable is retired at its $32,000 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 $71,000 cash. d. Received cash for the sale of equipment that had cost $59,000, yielding a $4,100 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 Using the income statement, the comparative balance sheet, and the additional information given above, reco- the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree w balances. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 13 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 June 30 Account Title Debit Credit Record entry Clear entry View general journal Prev $4,100 gain epaid Expenses and Wages Payable relate to Other Expenses on the income statement purchases and sales of inventory are on credit quirement General Journal General Ledger Trial Balance Direct Method Indirect Method ing the income statement, the comparative balance sheet, and the additional information given e summarized activity of the current fiscal year. Upon completion, the trial balance tab sh lances. "View transaction list Journal entry worksheet 3 4 5 6 13 Reconstruct the entry to record the retirement of the $32,000 note payable at its $32,000 carrying (book) value in exchange for cash. Note: Enter debits before credits Da June 30 Account Title Debit Credit econd entry Clear entry View general journal 5110 Priv aid Expenses and Wages Payable relate to Other Expenses on the income statemer Burchases and sales of inventory are on credit rement General Journal General Ledger Trial Balance Direct Method Indirect Method g the income statement, the comparative balance sheet, and the additional information give summarized activity of the current fiscal year. Upon completion, the trial balance tabs nces. ew transaction list Journal entry worksheet < 2 4 5 6 7 13 Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits Date June 30 Account Title Debit Credit Record entry Clear entry Prex 500 note payable is retired at its $32,000 carrying (book) value in exchange f y changes affecting retained earnings are net income and cash dividends pa quipment is acquired for $71,000 cash. ed cash for the sale of equipment that had cost $59,000, yielding a $4,100 gai d Expenses and Wages Payable relate to Other Expenses on the income state chases and sales of inventory are on credit. ment General Journal General Ledger Trial Balance Direct Method Indirect Method the income statement, the comparative balance sheet, and the additional information ummarized activity of the current fiscal year. Upon completion, the trial balance ces. transaction list Journal entry worksheet 1 4 5 6 7 8 9 13 Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Date June 30 Account Tide Debit Credit Record any Clear entry View general journal T 000 note payable is retired at its $32,000 carrying (book) value in exchange for car ly changes affecting retained earnings are net income and cash dividends paid. quipment is acquired for $71,000 cash ed cash for the sale of equipment that had cost $59,000, yielding a $4,100 gain. d Expenses and Wages Payable relate to Other Expenses on the income statement rchases and sales of inventory are on credit ement General Journal General Ledger Trial Balance Direct Methodi Indirect Method the income statement, the comparative balance sheet, and the additional information given ummarized activity of the current fiscal year. Upon completion, the trial balance tab sh ces. w transaction list Journal entry worksheet < 5 6 7 8 9 10 13 Close all revenue and gain accounts to income summary Enter debits before credits Die June 30 Account Title Debit Credit View general journa Che voy eived cash for the sale of equipment that Hau Said Expenses and Wages Payable relate to Other Expenses on the ince purchases and sales of inventory are on credit. irement General Journal General Ledger Trial Balance Direct Method Indirect Method ng the income statement, the comparative balance sheet, and the additional int summarized activity of the current fiscal year. Upon completion, the tria ances. View transaction list Journal entry worksheet < 6 7 8 9 10 11 13 Close all expense accounts to income summary. Note: Enter debits before credits. Date June 30 Account Title Debit Credit Record entry Clear entry View general joul 91 ement General Journal General Ledger Trial Balance Direct Method Indirec Method the income statement, the comparative balance sheet, and the additional in ummarized activity of the current fiscal year. Upon completion, the tria ces. w transaction list Bournal entry worksheet < 6 7 8 9 10 Close Income Summary to Retained Earnings. Note: Enter debits before credits. Date June 30 " 11 12 13 Account Title Debit Credit Record entry Clear entry View general jour Q Search elved cash for the sale of equip paid Expenses and Wages Payable relate to Other Expenses on the inco purchases and sales of inventory are on credit juirement General Journal General Ledger Trial Balance Direct Method Indirect Method ng the income statement, the comparative balance sheet, and the additional info summarized activity of the current fiscal year. Upon completion, the trial Bances. View transaction list Journal entry worksheet 6 7 8 9 10 11 12 13 Reconstruct the journal entry for cash dividends paid. Note: Enter debits before credits Date June 30 Account Title Debit Credit Record entry Clear entry View general journ G1 Reconstruct the journal entry tion.com/ext/map/index.html?_con-con&external browser-Daun LAFAYETTE INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities 252F% x Geconstruct the journal entry xtion.com/et/map/index.htm.com-condemnal browsers GAN252F%252Fnewconnect.mh Sad 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. Er reductions to net cash provided by operating activities as negative values Unadjusted Cash flows from operating activ LAFAYETTE INCORPORATED Stament of Cash Flows direct Method For Year Ended June 30, 2019 Adjustments to reconcile net income to net cash provided by operating ace Income statement hem not affecting cash Changes in current operating assets and billies