The following financial statements and additional information are reported. At June 30 Assets Cash Accounts receivable,...

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The following financial statements and additional information are reported. At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Equipment IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 93,700 $ 67,000 99,500 86,800 74,000 121,000 6,700 10,000 286,700 272,000 147,000 (38,500) $ 395,200 $ 48,000 8,300 138,000 (20,500) $ 389,500 $ 64,500 19,600 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 5,700 8,400 62,000 92,500 53,000 83,000 115,000 175,500 266,000 183,000 14,200 31,000 $ 395,200 $ 389,500 Sales Cost of goods sold IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 793,000 434,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 359,000 90,000 81,600 187,400 4,300 191,700 46,190 $ 145,510 Additional Information a. A $30,000 notes payable is retired at its $30,000 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. The following financial statements and additional information are reported. At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Equipment IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 93,700 $ 67,000 99,500 86,800 74,000 121,000 6,700 10,000 286,700 272,000 147,000 (38,500) $ 395,200 $ 48,000 8,300 138,000 (20,500) $ 389,500 $ 64,500 19,600 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 5,700 8,400 62,000 92,500 53,000 83,000 115,000 175,500 266,000 183,000 14,200 31,000 $ 395,200 $ 389,500 Sales Cost of goods sold IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 793,000 434,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 359,000 90,000 81,600 187,400 4,300 191,700 46,190 $ 145,510 Additional Information a. A $30,000 notes payable is retired at its $30,000 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.