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 December 31, current year balances:

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Clark 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. CLARK CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 406,000 132,000 633,000 1,171,000 392,000 (185, 000) $1,378,000 $ 260,800 113,000 554,000 927,800 341,000 (119,000) $1,149,800 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ $ 121,000 31,000 152,000 99,000 27,800 126,800 760,000 276,000 190,000 $1,378,000 708,000 198,000 117,000 $1,149,800 CLARK CORPORATION Income Statement For Year Ended December 31 Sales $2,365,000 Cost of goods sold 1,433,000 Gross profit 932,000 Operating expenses Depreciation expense $ 66,000 other expenses 652,000 718,000 Income before taxes 214,000 Income taxes expense 65,510 Net income 148, 490 Additional Information on Current Year Transactions a. Purchased equipment for $51,000 cash. b. Issued 26,000 shares of common stock for $5 cash per share. c. Declared and paid $75,490 in cash dividends. Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. 2 Reconstruct the journal entry for cash payments for inventory, Incorporating the change in the related balance sheet account(s), if any. Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Reconstruct the journal entry for cash paid for other operating expenses, Incorporating the change in the related balance sheet account(s), if any. S Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), If any. 6 Reconstruct the entry for the purchase of new equipment. 7 Reconstruct the entry for the issuance of common stock. ! Reconstruct the entry to record the payment of cash dividends. 9 Close the revenue account(s) to income summary. 10 Close the expense accounts to income summary. 11 Close Income Summary to Retained Earnings