Use the following financial statements and additional information.

ONTARIO INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	130,800			$	76,900
Accounts receivable, net		68,000				53,000
Inventory		69,000				96,000
Prepaid expenses		5,200				6,500
Total current assets		273,000				232,400
Equipment		160,000				148,000
Accum. depreciationEquipment		(39,000	)			(13,000	)
Total assets	$	394,000			$	367,400
Liabilities and Equity
Accounts payable	$	33,000			$	40,000
Wages payable		6,000				16,000
Income taxes payable		4,000				4,400
Total current liabilities		43,000				60,400
Notes payable (long term)		43,000				85,000
Total liabilities		86,000				145,400
Equity
Common stock, $5 par value		250,000				180,000
Retained earnings		58,000				42,000
Total liabilities and equity	$	394,000			$	367,400

ONTARIO INC. Income Statement For Year Ended June 30, 2019
Sales				$	835,000
Cost of goods sold					511,000
Gross profit					324,000
Operating expenses
Depreciation expense	$	70,000
Other expenses		81,000
Total operating expenses					151,000
					173,000
Other gains (losses)
Gain on sale of equipment					3,700
Income before taxes					176,700
Income taxes expense					54,090
Net income				$	122,610

Additional Information

1. A $43,000 note payable is retired at its $43,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $69,000 cash.
4. Received cash for the sale of equipment that had cost $57,000, yielding a $3,700 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

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.