GL1203 - Based on Problem 12-6A LO P2, P3

Jones Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

JONES CORPORATION Comparative Balance Sheets December 31
	Current Year				Prior Year
Assets
Cash	$	194,000			$	128,400
Accounts receivable		90,000				77,000
Inventory		606,000				530,000
Total current assets		890,000				735,400
Equipment		351,000				305,000
Accum. depreciationEquipment		(166,000	)			(106,000	)
Total assets	$	1,075,000			$	934,400
Liabilities and Equity
Accounts payable	$	92,000			$	75,000
Income taxes payable		28,000				25,400
Total current liabilities		120,000				100,400
Equity
Common stock, $2 par value		616,000				588,000
Paid-in capital in excess of par value, common stock		207,000				165,000
Retained earnings		132,000				81,000
Total liabilities and equity	$	1,075,000			$	934,400

JONES CORPORATION Income Statement For Year Ended December 31
Sales				$	1,865,000
Cost of goods sold					1,130,000
Gross profit					735,000
Operating expenses
Depreciation expense	$	60,000
Other expenses		514,000			574,000
Income before taxes					161,000
Income taxes expense					49,280
Net income				$	111,720

Additional Information on Current Year Transactions

1. Purchased equipment for $46,000 cash.
2. Issued 14,000 shares of common stock for $5 cash per share.

COMPLETE THE JOURNAL ENTRY

DEC 31 - Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any.

DEC 31-Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any

DEC 31 - Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any

DEC 31- Reconstruct the journal entry for cash paid for other operating expenses, incorporating the change in the related balance sheet account(s), if any

DEC 31- Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any

DEC 31-Reconstruct the entry for the purchase of new equipment.

DEC 31- Reconstruct the entry for the issuance of common stock.

DEC31-Reconstruct the entry to record the payment of cash dividends.

DEC 31 -Close the revenue account(s) to income summary.

DEC 31 -Close the expense accounts to income summary.

DEC 31- Close Income Summary to Retained Earnings.

JONES COMPANY
Statement of Cash Flows (Direct Method)
For Current Year Ended December 31
Cash flows from operating activities:
Cash flows from investing activities:
Cash flows from financing activities: