General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year.

Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method.

Indirect Method tab - Prepare the reconciliation to the indirect method.

all instructions are in light blue

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, current year balances.

Complete Journal Entries 1-14

Richards Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (D) all sales are credit sales, (2) all credins 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, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Additional Information on Current Yeer Trensections a. The loss on the cash sale of equipment was $6,900 idetails in b) b. Sold equipment costing $61,000, with accumulated depreciation of $43,000, for $11100 cash c. Purchased equipment costing $135,000 by paying $42,000 cash and signing a long-term note payable for the balance. d. Borrowed $6,000 cash by signing a short-term note payable e. Paid $67,000 cash to reduce the long-term notes payable. f. Issued 4,300 shares of common stock for $20 cash per share. 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. Journal entry worksheet 7 14 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. December 31, current year balances. Journal entry worksheet 56 8 Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits. December 31, current year balances. Journal entry worksheet