GL$1201($Algo$)-$ Based on Exercise $12-11$ LO P$2,$ P$3,$ A$1$

Use the following financial statements and additional information. Additional Information

a$.$ A $\backslash (\backslash$$ $42,000\backslash )$ note payable is retired at its $\backslash (\backslash$$ $42,000\backslash )$ 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 $\backslash (\backslash$$ $75,000\backslash )$ cash.

d$.$ Received cash for the sale of equipment that had cost $\backslash (\backslash$$ $62,000\backslash ),$ yielding a $\backslash (\backslash$$ $5,200\backslash )$ 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.

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 $30,2021$ 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 operating expenses, incorporating the change in the related balance sheet account$($s$),$ if any.

Note : $=$ journal entry has been entered

$5$ Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account$($s$),$ if any.

$6$ Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account$($s$),$ if any.

$7$ Reconstruct the entry to record the retirement of the $\backslash (\backslash$$ $42,000\backslash )$ note payable at its $\backslash (\backslash$$ $42,000\backslash )$ carrying $($book$)$ value in exchange for cash.

$8$ Reconstruct the entry for the purchase of new equipment.

$9$ Reconstruct the entry for the issuance of common stock.

Note : $=$ journal entry has been entered $\backslash (\backslash$$ $42,000\backslash )$ note payable at its $\backslash$$$42,000$ carrying $($book$)$ value in exchange for cash.

$8$ Reconstruct the entry for the purchase of new equipment.

$9$ Reconstruct the entry for the issuance of common stock.

$10$ Close all revenue and gain accounts to income summary.

$11$ Close all expense accounts to income summary.

$12$ Close Income Summary to Retained Earnings.

$13$ Reconstruct the journal entry for cash dividends paid.

Note: $=$ journal entry has been entered Prepare the Statement of Cash flows for the year ended June $30,2021$ using account on the General Ledger tab to identify the sources and uses of cas values.

Unadjusted