Ch 12 GL EX 12-11 Saved 1 GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 15 points VANCOUVER INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 eBook Print $ 74,000 78,000 66,000 5,500 223,500 173,000 (42,000) $354,500 $ 29, 300 61,000 92,000 6,900 189, 200 160,000 (14,000) $335, 200 References Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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 $ 30,000 8,000 4,700 42,700 38,000 80,700 $ 36,000 20, eee 5,200 61,200 75,000 136,200 220,000 53,800 $354,500 160,000 39,000 $335,200 VANCOUVER INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,000 Other expenses 89, eee Total operating expenses $904,000 553,000 351,000 163,00 188,000 Other cainc /inccec) Ch 12 GL EX 12-11 Saved Help S 1 15 points VANCOUVER INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $74,90 Other expenses 89,880 Total operating expenses $904,888 553,000 351, eee eBook 163,888 188, eee Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Print 4,600 192,688 58,950 $133,650 References Additional Information a. A $38,000 note payable is retired at its $38,000 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. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method 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 June 30, 2019 balances. View transaction list Ch 12 GL EX 12-11 Saved Help WILL Journal Ledger TRII LUIGI DIVU TILLITVU 1 Method Using the Income statement, the comparative balance sheet, and the additional Information glven above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances. 15 points View transaction list Journal entry worksheet eBook 1 13 > Print Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. References Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Cash 887,000 Accounts receivable, net 17,000 Sales 904,000 Record entry Clear entry View general journal