Golden 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.

GOLDEN CORPORATION Comparative Balance Sheets December 31 Prior Current Year Year Assets $ 107,000 71,000 526,000 704,000 299,000 Cash 164,000 83,000 601,000 848,000 335,000 (158,000) Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment (104,000) $ 899,000 $1,025,000 Total assets Liabilities and Equity Accounts payable Income taxes payable 87,000 28,000 71,000 25,000 96,000 Total current liabilities 115,000 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 592,000 196,000 568,000 160,000 75,000 $ 899,000 122,000 $1,025,000 Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,792,000 1,086,000 706,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $ 54,000 494,000 548,000 158,000 22,000 Income before taxes Income taxes expense 136,000 Net income View transaction list View journal entry worksheet No Date Account Title Debit Credit No Transaction Recorded 1 Dec 31 General Ledger> Requirement General Ledger Account Cash Accounts receivable, net No. Debit Credit Credit Balance Date Balance No. Date Debit Dec 31 107,000 Dec 31 71,000 Inventory Equipment Date Credit Credit Balance No. Debit Balance No. Date Debit 299,000 Dec 31 526,000 Dec 31 Accumulated depreciation - Equipment Accounts payable Date Credit Balance Credit Balance No. Debit No. Date Debit Dec 31 104,000 Dec 31 71,000 Income taxes payable Common stock, $2 par value Credit Credit Balance No. Date Debit Balance No. Date Debit 568,000 Dec 31 25,000 Dec 31 Retained earnings Paid-in capital in excess of par - Common Credit Balance Credit No. Date Debit No. Date Debit Balance Dec 31 160,000 Dec 31 75,000 General Journal Trial Balance GOLDEN COMPANY Trial Balance December 31, 2019 Credit Account Title Debit Cash 107,000 Accounts receivable, net 71,000 Inventory Equipment Accumulated depreciation - Equipment Accounts payable 526,000 299,000 104,000 71,000 Income taxes payable Common stock, $2 par value 25,000 568,000 Paid-in capital in excess of par Common 160,000 Retained earnings 75,000 1,003,000 $ 1,003,000 Total EA EA GOLDEN COMPANY Statement of Cash Flows (Di rect Method) For Current Year Ended December 31 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: GOLDEN COMPANY Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities: Net income $ 136,000 Adjustments to reconcile net income to net cash provided by operating activities: (12,000) (75,000) Increase in accounts receivable $ Increase in inventory Increase in accounts payable 16,000 Increase in income taxes payable 3,000 Depreciation expense 54,000 (14,000) Net cash provided by operating activities $ 122,000