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

GL1201 - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 2018 $ 23,600 53,000 98,000 7,800 182,400 187,000 (17,000) $352,400 GREEN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 65,400 Accounts receivable, net 68,000 Inventory 71,000 Prepaid expenses 6,200 Total current assets 210,600 Equipment 202,000 Accum. depreciation-Equipment (51,000) Total assets $361,600 Liabilities and Equity Accounts payable $ 34,000 Wages payable 8,000 Income taxes payable 4,900 Total current liabilities 46,900 Notes payable (long term) 45,000 Total liabilities 91,900 Equity Common stock, $5 par value 220,000 Retained earnings 49,700 Total liabilities and equity $361,600 $ 42,000 19,000 5,400 66,400 90,000 156,400 160,000 36,000 $352,400 GREEN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 91,000 Other expenses 107,000 Total operating expenses $1,080,000 661,000 419,000 198,000 221,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 7,700 228,700 70,010 158,690 $ 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 $89,000 cash. d. Received cash for the sale of equipment that had cost $74,000, yielding a $7,700 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. General Journal General Ledger Indirect Method Trial Balance Direct Method Requirement X Answer is not complete. 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, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances. No Date Account Title Debit Credit Jun 30 Cash 1,065,000 Accounts receivable, net General Ledger Account Cash Accounts receivable, net No. Date Debit Credit Balance No. Date Debit Credit Balance Jun 30 Jun 30 23,600 1,088,600 53,000 1 Jun 30 1,065,000 Inventory Prepaid expenses No. Date Debit Credit Balance No. Date Debit Credit Balance Jun 30 98,000 Jun 30 7,800 Accumulated depreciation - Equipment Equipment Debit No. Date Credit Balance No. Date Debit Credit Balance Jun 30 187,000 Jun 30 17,000 Accounts payable Wages payable No. Date Debit Credit Balance No. Date Debit Credit Balance Jun 30 42,000 Jun 30 19,000 Income taxes payable Notes payable (long-term) No. Date Debit Credit Balance No. Date Debit Credit Balance Jun 30 5,400 Jun 30 90,000 Common stock, Retained earnings par value No. Date Credit Debit Balance No. Credit Date Balance Debit Jun 30 160,000 Jun 30 36,000 GREEN INC. 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: Prev Requirement General Journal General Ledger Trial Balance Direct Method Indirect 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 GREEN INC. 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: