A $43,000 note payable is retired at its $43,000 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 $63,000 cash. Received cash for the sale of equipment that had cost $53,000, yielding a $2,500 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. Required information IThe following information applies to the questions displayed below. The following financial statements and additional information are reported. IKIBAN INC Comparative Balance Sheets Tune 30, 2018 and 2017 2018 2017 asctS λ.ccount岱receivabie, net Inventory Prepaid expenses Total current ssets Equipnent Accum. depreciation Equipment Total assets $ 73,100 101,000 87,800 6.800 68, 000 75,000 122,500 10,200 275,700 139,000 148,000 39,0001 21,000) $377,700 393,700 Liabilities and Equity Accounts payable Hages payable Income taxes payable Zotal current liabilities Notes payable (ong term) Zotal liabilities Equity Common stock, $5 par value $ 49,000 66,000 19, 800 5,800 8600 94,400 8,400 63,200 117,200 268,000 178,400 184,000 31,300 $377,700 393,700 7,500 otal liabilities and equity IKIBAN INC Income Statenent For Year Ended June 30, 2018 Salea Cost of goods sold Gross profit Operating expenses $798,000 435,000 363,000 Depreciation expense $82,600 other expenses Zotal operating expenses 173,600 189,400 Other gains (losses Gain on sale of equipment Incone before taxes Income taxea expense Net income 4,400 193,800 46,290 $147,510 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 $81,600 cash.
d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 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.