Use the following financial statements and additional information.

$\backslash$table$[[\backslash$table$[[$MARCELLUS INCORPORATED$],[$Comparative Balance Sheets$],[$June $30,2021$ and $2020]]],[,2021],[$Assets$,$$$62,300,$$$11,300],[$Cash$,78,000,61,000],[$Accounts receivable, net,$66,000,92,000],[$Inventory$,6,000,7,500],[$Prepaid expenses,$212,300,171,800],[$Total current assets,$192,000,178,000],[$Equipment$,(48,000),(16,000)],[$Accumulated depreciation$-$Equipment,$$356,300,$$$333,800],[$Total assets,,$],[$Liabilities and Equity,$$30,000,$$$36,000],[$Accounts payable,$6,000,16,000],[$Wages payable,$4,300,4,800],[$Income taxes payable,$40,300,56,800],[$Total current liabilities,$38,000,75,000],[$Notes payable $($long term$),78,300,131,800],[$Total liabilities,,$],[$Equity$,220,000,160,000],[$Common stock, $$5$ par value,$58,000,42,000],[$Retained earnings,$$356,300,$$$333,800],[$Total liabilities and equity,,$]]$

$\backslash$table$[[\backslash$table$[[$MARCELLUS INCORPORATED$],[$Income Statement$],[$For Year Ended June $30,2021]],],[$Sales$,$$$1,018,000],[$Cost of goods sold,$623,000],[$Gross profit,$395,000],[$Operating expenses$],[$Depreciation expense,$],[$Other expenses,$],[$Total operating expenses,$($$$186,000)/(209\mathrm{.}000)],[$Other gains $($losses$)],[$Gain on sale of equipment,$6,500],[$Income before taxes,$215,500],[$Income taxes expense,$65,960],[$Net income,$$149,540]]$

Additional Information

a$.$ A $$37,000$ note payable is retired at its $$37,000$ 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 $$83,000$ cash.

d$.$ Received cash for the sale of equipment that had cost $$69,000,$ yielding a $$6,500$ 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.

$\backslash$table$[[$Requirement$,\backslash$table$[[$General$],[$Journal$]],\backslash$table$[[$General$],[$Ledger$]],$Trial Balance,Direct Method,$\backslash$table$[[$Indirect$],[$Method$]]]]$

General Journal tab $-$ Reconstruct the entries to summarize the activity between June $30,2020$ and June $30,2021.$ Direct Method tab $-$ Prepare the Statement of Cash flows for the year ended June $30,2021$ using the direct method. Indirect Method tab $-$ Prepare the reconciliation to the indirect method.