GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. BARCELONA INCORPORATED Comparative Balance Sheets June 30, 2021 and 2020 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 BARCELONA INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $ 68,000 77,000 2021 $ 86,300 78,000 66,000 5,000 235,300 153,000 (39,000) $ 349,300 $ 30,000 8,000 3,600 41,600 38,000 79,600 220,000 49,700 $ 349,300 $ 803,000 491,000 312,000 $ 145,000 2020 $ 41,700 61,000 92,000 6,300 201,000 142,000 (13,000) $ 330,000 $ 36,000 19,000 4,000 59,000 75,000 134,000 160,000 36,000 $ 330,000

GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. Additional Information a. A $37,000 note payable is retired at its $37,000 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 $67,000 cash. d. Received cash for the sale of equipment that had cost $56,000, yielding a $3,300 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 the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30,202 balances. Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the Jur balances. 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. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Prepare the Statement of Cash flows for the year ended June 30, 2021 using the Direct Method. Hint Use the Cash Taccount on the General Ledger tab to identify the sources and uses of cash. List cash outfiows as negative values. Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values