Use the following financial statements and additional information. STREAMLINE INCORPORATED Comparative Balance Sheets June 30, 2021 and 2020 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment. Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity STREAMLINE INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Cain on sale of equipment Income before taxes Income taxes expense Net income 2021 $ 100,200 73,000 63,000 4,900 241,100 147,000 (36,000) $ 352,100 $ 66,000 74,000 $ 26,000 7,000 4,700 37,700 33,000 70,700 240,000 41,400 $ 352,100 $ 140,000 160,000 $ 44,100 57,000 88,000 6,100 195,200 136,000 (12,000) $319,200 $ 772,000 472,000 300,000 2020 2,900 162,900 49,860 $ 113,040 $ 32,000 17,000 5,200 170,000 30,000 $319,200 54,200 65,000 119,200 Note: Enter debits before credits. Date June 30 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. 1 2 3 4 5 6 7 8 Date June 30 Additional Information a. A $32,000 note payable is retired at its $32,000 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 $65,000 cash. 2 Vote: Enter debits before credits. d. Received cash for the sale of equipment that had cost $54,000, yielding a $2,900 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. 3 Account Title 4 5 6 Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. Account Title 4 Note: Enter debits before credits. Date June 30 5 7 Account Title ***** Debit 8 ..... Debit 7 13 < Credit 13 Credit Note: Enter debits before credits. Debit Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. Date June 30 < Reconstruct the journal entry for the sale of equipment at a gain, incorporating the change in the related balance sheet account(s), if any. 1 Note: Enter debits before credits. Date June 30 3 Credit 8.13 < 1 2 3 Account Title 4 5 6 7 Date June 30 Reconstruct the journal entry for cash paid for operating expenses, incorporating the change in the related balance sheet account(s), if any. Account Title Note: Enter debits before credits 5 4 5 6 Account Title 7 6 Debit 7 8. Debit 13 ***** Credit 13 Reconstruct the journal entry for Income taxes expense, incorporating the change in the related balance sheet account(s), if any. Credit 13 Debit Credit