GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. ECO BUILD INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 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 ECO BUILD INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold 2019 2018 $113,700 $ 75,000 70,000 55,000 71,000 98,000 4,800 6,000 259,500 234,000 144,000 133,000 (12,000) $ 367,500 (36,000) $ 34,000 $ 355,000 $ 42,000 16,000 5,000 6,000 4,500 44,500 63,000 45,000 90,000 89,500 153,000 220,000 160,000 58,000 42,000 $ 367,500 $ 355,000 $ 757,000 463,000 294,000 Gross profit Operating expenses, Depreciation expense Other expenses Total operating expenses $ 65,000 73,000 $ 138,000 Sales ECO BUILD INCORPORATED Income Statement For Year Ended June 30, 2019 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense $ 65,000 73,000 Net income $ 757,000 463,000 294,000 $ 138,000 156,000 2,700 158,700 48,580 $ 110,120 Additional Information a. A $45,000 note payable is retired at its $45,000 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 $64,000 cash. d. Received cash for the sale of equipment that had cost $53,000, yielding a $2,700 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 the summarized activity of the current fiscal year. Upon completion, the trial balance tab should a balances. View transaction list View journal entry worksheet No Date Account Title 1 June 30 Cash Debit Prev 1 of 1 Next View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 June 30 Cash Accounts receivable, net Sales 2 June 30 Cost of goods sold N Accounts payable Inventory Cash 3 June 30 Depreciation expense Accumulated depreciation Equipment 4 June 30 Other expenses ces Wages payable Prepaid expenses Cash 5 June 30 Cash Accumulated depreciation-Equipment Equipment Gain on sale of equipment 6 June 30 Income taxes expense Income taxes payable. Cash Navt ok t 6 June 30 Income taxes expense) Income taxes payable Cash 7 June 30 Notes payable (long-term) Cash 8 June 30 Equipment Cash 9 June 30 Cash Common stock, $5 par value 10 10 June 30 Sales Gain on sale of equipment Income summary ences 11 June 30 Income summary Cost of goods sold Depreciation expense Other expenses Income taxes expense 12 June 30 Income summary Retained earnings 13 June 301 Retained earnings Cash 9 Requirement General Ledger) Prev 1 of 1 Next ok t 6 June 30 Income taxes expense) Income taxes payable Cash 7 June 30 Notes payable (long-term) Cash 8 June 30 Equipment Cash 9 June 30 Cash Common stock, $5 par value 10 10 June 30 Sales Gain on sale of equipment Income summary ences 11 June 30 Income summary Cost of goods sold Depreciation expense Other expenses Income taxes expense 12 June 30 Income summary Retained earnings 13 June 301 Retained earnings Cash 9 Requirement General Ledger) Prev 1 of 1 Next Post-closing ECO BUILD INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: + Post-closing Cash flows from operating activities ECO BUILD INCORPORATED Statement of Cash Flows (dest Method 30, 2018 For Year Ended Adjustments to reconcile net income to net cash provided by operating activities Income statement hems not affecting cash Changes in ourment operating assets and abilities DirectMad