VANCOUVER INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 2019 $ 74,000 78,000 66,000 5,500 223,500 173,000 (42,000) $ 354,500 $ 30,000 8,000 4,700 42,700 38,000 80,700 220,000 53,800 $ 354,500 2018 $ 29,300 61,000 92,000 6,900 189, 200 160,000 (14,000) $ 335,200 $ 36,000 20,000 5,200 61,200 75,000 136,200 160,000 39,000 $ 335,200 VANCOUVER INCORPORATED Income Statement For Year Ended June 30, 2019 Sales $ 904,000 Cost of goods sold Gross profit 553,000 351,000 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 58,950 Income taxes expense Net income $ 133,650 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 $73,000 cash. d. Received cash for the sale of equipment that had cost $60,000, yielding a $4,600 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. Journal entry worksheet