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Use the following financial statements and additional information.

SACRAMENTO INC. Comparative Balance Sheets June 30, 2017 and 2016
	2017				2016
Assets
Cash	$	100,800			$	45,200
Accounts receivable, net		76,000				59,000
Inventory		65,000				90,000
Prepaid expenses		5,400				6,800
Total current assets		247,200				201,000
Equipment		170,000				157,000
Accum. depreciationEquipment		(42,000	)			(14,000	)
Total assets	$	375,200			$	344,000
Liabilities and Equity
Accounts payable	$	28,000			$	34,000
Wages payable		8,000				19,000
Income taxes payable		4,500				5,000
Total current liabilities		40,500				58,000
Notes payable (long term)		35,000				70,000
Total liabilities		75,500				128,000
Equity
Common stock, $5 par value		250,000				180,000
Retained earnings		49,700				36,000
Total liabilities and equity	$	375,200			$	344,000

SACRAMENTO INC. Income Statement For Year Ended June 30, 2017
Sales				$	886,000
Cost of goods sold					542,000
Gross profit					344,000
Operating expenses
Depreciation expense	$	73,000
Other expenses		87,000
Total operating expenses					160,000
					184,000
Other gains (losses)
Gain on sale of equipment					4,300
Income before taxes					188,300
Income taxes expense					57,640
Net income				$	130,660

Additional Information

A $35,000 note payable is retired at its $35,000 carrying (book) value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $72,000 cash.

Received cash for the sale of equipment that had cost $59,000, yielding a $4,300 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

*REQUIREMENT TO COMPLETE FOR GENERAL JOURNAL BASED ON THESE QUESTION BELOW HERE:

1

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.

3

Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any.

4

Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any.

5

Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any.

6

Reconstruct the journal entry for income taxes expense, incorporating the change in the related balance sheet account(s), if any.

7

Reconstruct the entry to record the retirement of the $35,000 note payable at its $35,000 carrying (book) value in exchange for cash.

8

Reconstruct the entry for the purchase of new equipment.

9

Reconstruct the entry for the issuance of common stock.

10

Close all revenue and gain accounts to income summary.

11

Close all expense accounts to income summary.

12

Close Income Summary to Retained Earnings.

13

Reconstruct the journal entry for cash dividends paid.

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