GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 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 affectung retained earnings are net income and cash dividends paid. c. New equipment is acquired for $79,000 cash. d. Recelved cash for the sale of equipment that had cost $65,000, ylelding a $5,800 gain. e. Prepald Expenses and Wages Payable relate to Other Expenses on the income statement. 1. All purchases and sales of Inventory are on credit. 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 agre balances. 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 balances. 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 $32,000 note payable at its $32,000 carrying (book) value in exchange for cash. 8 Reconstruct the entry for the purchase of new equipment. Note : = journal entry has been entered 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