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 $$40,000$ note payable is retired at its $$40,000$ 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 $$74,000$ cash.

d$.$ Received cash for the sale of equipment that had cost $$61,000,$ yielding a $$4,900$ 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. 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. Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

dots.

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.

$\backslash$table$[[$Date$,$Account Title,Debit,Credit$],[$June $30,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$13$

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

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$Account Title,Debit,Credit$],[$June $30,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$