Use the following financial statements and additional information.

Additional Information

a$.$ A $$30,000$ note payable is retired at its $$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 $$57,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$48,600,$ yielding a $$2,000$ 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 tab $-$ Reconstruct the entries to summarize the activity between June $30,2020$ and June $30,2021.$

Direct Method tab $-$ Prepare the Statement of Cash flows for the year ended June $30,2021$ using the direct method.

Indirect Method tab $-$ Prepare the reconciliation to the indirect method.