80.2K

Verified Solution

Link Copied!

2018 SACRAMENTO INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $100,800 Accounts receivable, net 76.000 Inventory 65,000 Prepaid expenses 5,400 Total current assets 247,200 Equipment 170,000 Accum. depreciation Equipment (42.000) Total assets $375,200 Liabilities and Equity Accounts payable $ 28,000 Wages payable 8,000 Income taxes payable 4,500 Total current liabilities 40,500 Notes payable (long term) 35,000 Total liabilities 75,500 Equity Common stock, $5 par value 250,000 Retained earnings 49.700 Total liabilities and equity $375,200 $ 45,200 59,000 90,000 6.800 201,000 157,000 (14,000) $344,000 $ 34,000 19,000 5.000 58,000 70,000 128,000 s 180,000 36,000 $344,000 SACRAMENTO INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $73,000 Other expenses 87,000 Total operating expenses $886,000 542.000 344,000 160,000 184.000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4.300 188,300 57,640 $130,660 Additional Information a. A $35,000 note payable is retired at its $35,000 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 $72,000 cash. d. Received cash for the sale of equipment that had cost $59,000 yielding a $4,300 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. View transaction list Journal entry worksheet 1 23 5 6 7 8 .. 13 Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Dobit Credit Jun 30 Record entry Clear entry View general Journal Journal entry worksheet 1 2 5 6 7 8 13 Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Account Title Dobit Credit Data Jun 30 Record entry Clear entry View general Journal Journal entry worksheet Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 7 8 ... 13 Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general journal Journal entry worksheet 2 3 5 6 7 B 13 > ..... Reconstruct the entry to record the retirement of the $35,000 note payable at its $35,000 carrying (book) value in exchange for cash. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Journal entry worksheet 3 4 5 6 7 ... 13 Reconstruct the entry for the purchase of new equipment. Note: Enter debits before credits Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal View transaction list Journal entry worksheet .. 8 10 11 12 13 Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Dato Account Titio Debit Credit Jun 30 Record entry Clear entry View general Journal Journal entry worksheet 9 19 11 12 13 > Close all revenue and gain accounts to Income summary. Note: Enter debits before credits. Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Journal entry worksheet 6 7 8 9 10 11 12 13 G Close Income Summary to Retained Earnings. Note: Enter debits before credits Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal *** 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 SACRAMENTO 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:

Answer & Explanation Solved by verified expert

See Answer