GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1

GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional Information. PORTER INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 71,100 79, eee 63,00 6,300 210,400 205,000 (51,688) $364, 4ee $ 6, 100 55,00 88, eee 7,900 157, eee 190,00 (17, eee) $ 330, eee 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 $ 26,000 8,888 3,600 37,600 33, eee 79,600 $ 32, see 20,00 4, eee 56, see 65, eee 121, eee 240, eee 53,800 $364,400 170,000 39, eee $ 330, eee PORTER INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 93,800 Other expenses 199,800 Total operating expenses $ 1,102, eee 674, eee 428,00 $ 202,200 226, see Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 8, 20e 234, 200 71,690 $ 162,510 Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends pald. c. New equipment is acquired for $91,000 cash. d. Received cash for the sale of equipment that had cost $76,000, ylelding a $8,200 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 PORTER INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 93, eee Other expenses 199, eee Total operating expenses $ 1,102,000 674, eee 428,00 $ 202,wee 226,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 8, 200 234, 200 71,690 $ 162,510 Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net Income and cash dividends pald. c. New equipment is acquired for $91,000 cash. d. Received cash for the sale of equipment that had cost $76,000, ylelding a $8,200 gain. e. Prepald Expenses and Wages Payable relate to Other Expenses on the Income statement. f. All purchases and sales of Inventory are on credit General Requirement General Trial Balance Direct Method Indirect Journal Ledger Method General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and June 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. c. New equipment is acquired for $91,000 cash. d. Received cash for the sale of equipment that had cost $76,000, ylelding a $8,200 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. 15 points General General Requirement Indirect Journal Ledger Trial Balance Direct Method Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the Cash T- account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. eBook Unadjusted Ask PORTER INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Print References Cash flows from investing activities: Cash flows from financing activities: f. All purchases and sales of Inventory are on credit General Requirement General Indirect Journal Ledger Trial Balance Direct Method Method 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. Unadjusted PORTER INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities View transaction list 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. Date June 30 Account Title Debit Credit Record entry Clear entry View general journal