Williams Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The companys balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

1. Purchased equipment for $57,000 cash.
2. Issued 38,000 shares of common stock for $5 cash per share.
3. Declared and paid $97,600 in cash dividends

Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the December 31, 2017 balances.

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 other operating expenses, incorporating the change in the related balance sheet account(s), if any.

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

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

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

8. Reconstruct the entry to record the payment of cash dividends.

9. Close the revenue account(s) to income summary.

10. Close the expense accounts to income summary.

11. Close Income Summary to Retained Earnings.

Prepare the Statement of Cash flows for the year ended December 31, 2017 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.

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.

WILLIAMS CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 619,000 174,000 661,000 1,454,000 434,000 (205,000) $1,683,000 $ 393, 200 149,000 578,000 1,120,200 377,000 (131,000) $1,366,200 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ $ 150,000 34,000 184,000 123,000 30, 200 153,200 904,000 346,000 249,000 $1,683,000 828,000 232,000 153,000 $1,366,200 WILLIAMS CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 2,997,000 Cost of goods sold 1,818,000 Gross profit 1,179,000 Operating expenses Depreciation expense $ 74,000 Other expenses 826,000 900,000 Income before taxes 279,000 Income taxes expense 85,400 Net income $ 193,600 WILLIAMS COMPANY Statement of Cash Flows (Direct Method) For Year Ended December 31, 2017 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: WILLIAMS COMPANY Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2017 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities