Use the following financial statements and additional information.

VANCOUVER INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	74,000			$	29,300
Accounts receivable, net		78,000				61,000
Inventory		66,000				92,000
Prepaid expenses		5,500				6,900
Total current assets		223,500				189,200
Equipment		173,000				160,000
Accum. depreciationEquipment		(42,000	)			(14,000	)
Total assets	$	354,500			$	335,200
Liabilities and Equity
Accounts payable	$	30,000			$	36,000
Wages payable		8,000				20,000
Income taxes payable		4,700				5,200
Total current liabilities		42,700				61,200
Notes payable (long term)		38,000				75,000
Total liabilities		80,700				136,200
Equity
Common stock, $5 par value		220,000				160,000
Retained earnings		53,800				39,000
Total liabilities and equity	$	354,500			$	335,200

VANCOUVER INC. Income Statement For Year Ended June 30, 2019
Sales				$	904,000
Cost of goods sold					553,000
Gross profit					351,000
Operating expenses
Depreciation expense	$	74,000
Other expenses		89,000
Total operating expenses					163,000
					188,000
Other gains (losses)
Gain on sale of equipment					4,600
Income before taxes					192,600
Income taxes expense					58,950
Net income				$	133,650

Additional Information

1. A $38,000 note payable is retired at its $38,000 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 $73,000 cash.
4. Received cash for the sale of equipment that had cost $60,000, yielding a $4,600 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.

Part 1 Journal Entry Worksheet

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

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

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

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

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.

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

7. Reconstruct the entry to record the retirement of the $38,000 note payable at its $38,000 carrying (book) value in exchange for cash.

8. Reconstruct the entry for the purchase of new equipment.

9. Reconstruct the entry for the issuance of common stock.

10. Close all revenue and gain accounts to income summary.

11. Close all expense accounts to income summary.

12. Close Income Summary to Retained Earnings.

13. Reconstruct the journal entry for cash dividends

Part 2 - Statement of Cash Flows Direct 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.

VANCOUVER INC.
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:

Part 3 - Statement of Cash Flows Indiret 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.

UnadjustedAdjustedPost-closing

Unadjusted

VANCOUVER 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: