During the year ended 30 June 2019, the following information was recorded in the company’s accounts: 

1. Credit sales, $200 000. 

2. Cash sales, $6000. 

3. Collections from customers, $150 000. 

4. Purchases of inventory on credit, $70 000. 

5. Payments of accounts payable, $50 000. 

6. Cost of goods sold, $80 000. 

7. Wages expense, $90 000, not yet paid. 

8. Wages paid, $22 000. 

9. Paid tax payable, $6000. 

10. Cash dividends of $20 000, declared and paid.

Required: 

Prepare journal entries, an income statement for the year ended 30 June 2019 and a balance sheet as at 30 June 2019.

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Assets Current assets Cash Accounts receivable Inventory $ 14 000 36 000 42 000 92 000 Liabilities and shareholders' equity Current liabilities Accounts payable Tax payable Shareholders' equity Share capital Retained profits $ 12 000 6 000 40 000 34 000 92 000