Use the following financial statements and additional information.

PORTER INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	71,100			$	6,100
Accounts receivable, net		70,000				55,000
Inventory		63,000				88,000
Prepaid expenses		6,300				7,900
Total current assets		210,400				157,000
Equipment		205,000				190,000
Accum. depreciationEquipment		(51,000	)			(17,000	)
Total assets	$	364,400			$	330,000
Liabilities and Equity
Accounts payable	$	26,000			$	32,000
Wages payable		8,000				20,000
Income taxes payable		3,600				4,000
Total current liabilities		37,600				56,000
Notes payable (long term)		33,000				65,000
Total liabilities		70,600				121,000
Equity
Common stock, $5 par value		240,000				170,000
Retained earnings		53,800				39,000
Total liabilities and equity	$	364,400			$	330,000

PORTER INC. Income Statement For Year Ended June 30, 2019
Sales				$	1,102,000
Cost of goods sold					674,000
Gross profit					428,000
Operating expenses
Depreciation expense	$	93,000
Other expenses		109,000
Total operating expenses					202,000
					226,000
Other gains (losses)
Gain on sale of equipment					8,200
Income before taxes					234,200
Income taxes expense					71,690
Net income				$	162,510

Additional Information

1. A $33,000 note payable is retired at its $33,000 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 $91,000 cash.
4. Received cash for the sale of equipment that had cost $76,000, yielding a $8,200 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.

7. 1

   Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

8. 2

   Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any.

9. 3

   Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

10. 4

    Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any.

11. 5

    Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any.

12. 6

    Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any.

13. 7

    Reconstruct the entry to record the retirement of the $33,000 note payable at its $33,000 carrying (book) value in exchange for cash.

14. 8

    Reconstruct the entry for the purchase of new equipment.

15. 9

    Reconstruct the entry for the issuance of common stock.

16. 10

    Close all revenue and gain accounts to income summary.

17. 11

    Close all expense accounts to income summary.

18. 12

    Close Income Summary to Retained Earnings.

19. 13

    Reconstruct the journal entry for cash dividends paid.

No Date Account Title Debit Credit 1 Jun 30 Cash 1,087,000 Accounts receivable, net 1,087,000 X 2 Jun 30 655,000 Accounts payable Cost of goods sold 655,000 X 3 Jun 30 93,000 Depreciation expense Accumulated depreciation - Equipment 93,000 4 Jun 30 120,200 X Other expenses Wages payable 120,200 X 5 Jun 30 25,200 59,000 Cash Accumulated depreciation - Equipment Gain on sale of equipment Equipment 8,200 76,000 6 Jun 30 71,690 Income taxes expense Income taxes payable 71,690 X 7 Jun 30 33,000 Notes payable (long-term) Cash 33,000 8 Jun 30 91,000 Equipment Cash 91,000 9 Jun 30 Cash 70,000 Common stock, S5 par value 70,000 10 Jun 30 Gain on sale of equipment Sales Income summary 8,200 1,102,000 1,110,200 11 Jun 30 947,690 Income summary Cost of goods sold Depreciation expense 674,000 93,000 11 Jun 30 947,690 Income summary Cost of goods sold Depreciation expense Other expenses Income taxes expense ololololo 674,000 93,000 109,000 71,690 12 Jun 30 162,510 Income summary Retained earnings 162,510 13 Jun 30 Retained earnings 147,710 Cash 147,710 Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Post-closing PORTER INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers $ 1,087,000 Decrease in inventory (655,000) Cash paid for operating expenses (120,200) Cash paid for income taxes (71,290) $ 240,510 Net cash provided by operating activities Cash flows from investing activities: Cash paid for equipment Cash received from sale of equipment (91,000) 25,200 (65,800) Net cash provided by investing activities Cash flows from financing activities: Cash received from stock issuance Decrease in accounts payable Increase in accounts payable Cash paid for dividends Net cash used by financing activities Net increase in cash Cash balance at prior year-end Cash balance at current year-end 70,000 (33,000) 1,000 (147,710) S (109,710) 65,000 6,100 71,100 S 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. Post-closing PORTER INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by operating activities, using the direct method: $ 240,510