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Use the following financial statements and additional information. 2018 UPPERCHURCH INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $113,400 Accounts receivable, net 76,000 Inventory 65,000 Prepaid expenses 5,000 Total current assets 259,400 Equipment 150,000 Accum. depreciation-Equipment (39,000) Total assets $370,400 Liabilities and Equity Accounts payable $ 28,000 Wages payable 7,000 Income taxes payable 4,900 Total current liabilities 39,900 Notes payable (long term) 35,000 Total liabilities 74,900 Equity Common stock, $5 par value 250,000 Retained earnings 45,500 Total liabilities and equity $370,400 $ 59,200 59,000 90,000 6,200 214,400 139,000 (13,000) $340,400 $ 34,000 18,000 5,400 57,400 70,000 127,400 180,000 33,000 $340,400 UPPERCHURCH INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $67,000 Other expenses 75,000 Total operating expenses $787,000 481,000 306,000 142,000 164,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3, 100 167, 100 51, 150 $115,950 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 pald. c. New equipment is acquired for $66,000 cash. d. Received cash for the sale of equipment that had cost $55.000, yielding a $3.100 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. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between June 30, 2018 and lune 30, 2019. Direct Method tab - Prepare the Statement of Cash flows for the year ended June 30, 2019 using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method. General Journal > 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, reco the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree w balances. View transaction list Journal entry worksheet Journal entry worksheet 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 Debit Credit Account Title . Jun 30 . . Record entry Clear entry View general journal Journal entry worksheet Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general journal Journal entry worksheet 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, reco the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree w balances. View transaction list Journal entry worksheet Journal entry worksheet 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 Debit Credit Account Title . Jun 30 . . Record entry Clear entry View general journal Journal entry worksheet Reconstruct the entry for the issuance of common stock. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general journal Journal entry worksheet

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