Use the following financial statements and additional information.

SMITH INCORPORATED

Comparative Balance Sheets

June $30,2021$ and $2020$

$20212020$

Assets

Cash $ $116,500$ $ $60,500$

Accounts receivable, net $68,00053,000$

Inventory $63,00088,000$

Prepaid expenses $4,4005,500$

Total current assets $251,900207,000$

Equipment $127,000118,000$

Accumulated depreciation$$Equipment $(33,000)(11,000)$

Total assets $ $345,900$ $ $314,000$

Liabilities and Equity

Accounts payable $ $26,000$ $ $32,000$

Wages payable $6,00016,000$

Income taxes payable $3,6004,000$

Total current liabilities $35,60052,000$

Notes payable $($long term$)33,00065,000$

Total liabilities $68,600117,000$

Equity

Common stock, $$5$ par value $240,000170,000$

Retained earnings $37,30027,000$

Total liabilities and equity $ $345,900$ $ $314,000$

SMITH INCORPORATED

Income Statement

For Year Ended June $30,2021$

Sales $ $685,000$

Cost of goods sold $419,000$

Gross profit $266,000$

Operating expenses

Depreciation expense $ $60,000$

Other expenses $68,000$

Total operating expenses $ $128,000$

$138,000$

Other gains $($losses$)$

Gain on sale of equipment $2,100$

Income before taxes $140,100$

Income taxes expense $42,880$

Net income $ $97,220$

Additional Information

A $$32,000$ note payable is retired at its $$32,000$ 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 $$59,000$ cash.

Received cash for the sale of equipment that had cost $$50,000,$ yielding a $$2,100$ gain.

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

All purchases and sales of inventory are on credit.Journal entry worksheet

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