Additional Information a. A $30,000 note payable is retired at its $30,000 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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.

Please answer the Journal entry worksheet, Direct and Indirect Cash flows. Thank you!

Use the following financial statements and additional information. 20 2018 IKIBAN INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 87,500 Accounts receivable, net 65,000 Inventory 63,800 Prepaid expenses 4,400 Total current assets 220,700 Equipment 124,000 Accumulated depreciation-Equipment (27,000) Total assets $ 317,700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6,000 Income taxes payable 3,400 Total current liabilities 34,400 Notes payable (long term) 30,000 Total liabilities 64,400 Equity Common stock, $5 par value 220,000 Retained earnings 33,300 Total liabilities and equity $ 317,700 $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $ 292,900 $ 30,000 15,000 3,800 48,800 60,000 108,800 160,000 24,100 $ 292,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 58,600 Other expenses 67,000 Total operating expenses $ 678,000 411,000 267,000 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510 Additional Information a. A $30,000 note payable is retired at its $30,000 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general journal Journal entry worksheet 1 ..... 4 5 6 7 8 9 13 .... Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Date Account Title Debit Credit June 30 Record entry Clear entry View general journal Journal entry worksheet Close all revenue and gain accounts to income summary. Note: Enter debits before credits. Date Account Title Debit Credit June 30 Record entry Clear entry View general journal Journal entry worksheet .... Close all expense accounts to income summary. Note: Enter debits before credits. Account Title Debit Credit Date June 30 Record entry Clear entry View general Journal Journal entry worksheet III. Close Income Summary to Retained Earnings. Note: Enter debits before credits. Date Account Title Debit Credit June 30 Record entry Clear entry View general journal Journal entry worksheet