Panzarella Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1)<all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory areon credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) anychange in Income Taxes Payable reflects the accrual and cash payment of taxes.AssetsCashAccounts receivableInventoryTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableIncome taxes payableTotal current liabilities.EquityCommon stock, $2 par valuePaid-in capital in excess of par value, common stockRetained earningsTotal liabilities and equitySalesCost of goods soldGross profitOperating expensesDepreciation expenseOther expensesIncome before taxesIncome taxes expenseNet incomeRequirementPANZARELLA CORPORATIONComparative Balance SheetsDecember 31PANZARELLA CORPORATIONIncome StatementFor Year Ended December 31GeneralJournalView transaction listGeneralLedgerDateDecember31$ 75,000860,000Note: Enter debits before credits.Additional Information on Current Year Transactionsa. Purchased equipment for $57,000 cash.b. Issued 40,000 shares of common stock for $5 cash per share.c. Declared and paid $102,620 in cash dividends.Current Year$ 655,000181,000665,0001,501,000440,000(208,000)$ 1,733,000$ 155,00034,000189,000Account Title928,000357,000259,000$1,733,000$ 3,118,0001,891,0001,227,000Journal entry worksheet< 1 2 3 4 5 6 7 8935,000292,00089,380$ 202,620Trial Balance Direct MethodIndirectMethodUsing the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries forthe summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the December31, current year balances.Reconstruct the journal entry for cash receipts from customers, incorporatingthe change in the related balance sheet account(s), if any.*****Debit11Prior YearCredit$414,600155,000582,0001,151,600383,000(133,000)$ 1,401,600$ 127,00030,600157,600848,000237,000159,000$ 1,401,600DateDecember31Note: Enter debits before credits.Record entry1<2DateDecember3113Reconstruct the journal entry for cash payments for inventory, incorporatingthe change in the related balance sheet account(s), if any.2Note: Enter debits before credits.DateDecember313243Account TitleNote: Enter debits before credits.5Clear entry454Account TitleReconstruct the journal entry for depreciation expense, incorporating thechange in the related balance sheet account(s), if any.6578Account Title………….Debit6 77 8View general Journal11CreditDebit6 7 8Reconstruct the journal entry for cash paid for other operating expenses,incorporating the change in the related balance sheet account(s), if any.Debit11Credit11Credit <1Note: Enter debits before credits.DateDecember311<2 3Reconstruct the journal entry for income taxes expense, incorporating thechange in the related balance sheet account(s), if any.DateDecember31Note: Enter debits before credits.123DateDecember3142 3Note: Enter debits before credits.Reconstruct the entry for the purchase of new equipment.5Account Title454Account Title6 7 865 6Account Title7Reconstruct the entry for the issuance of common stock.7*****Debit8Debit811DebitCredit11Credit11CreditUsing the income statement, the comparative balance sheet, and the additional information given athe summarized activity of the current fiscal year. Upon completion, the trial balance tab sho31, current year balances.View transaction listJournal entry worksheet< 1 2 3Note: Enter debits before credits.DateDecember31Record entryReconstruct the entry to record the payment of cash dividends.Note: Enter debits before credits.DateDecember31<Journal entry worksheet< ↑ ..... 445Account TitleNote: Enter debits before credits.Clear entryClose the revenue account(s) to income summary.Journal entry worksheetDateDecember31Record entry5 6 71 .... 4 5 6 7Account TitleClose the expense accounts to income summary.6Account TitleClear entry78988 9DebitDebitDebit1011CreditView general journal11Credit11CreditView general Journal>>Journal

Cash Flow Statement includes inflow and outflow of cash during the financial year. The movements in…

< Panzarella Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash PANZARELLA CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity PANZARELLA CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $75,000 860,000 Current Year $ 655,000 181,000 665,000 1,501,000 440,000 (208,000) $1,733,000 $ 155,000 34,000 189,000 928,000 357,000 259,000 $1,733,000 $ 3,118,000 1,891,000 1,227,000 935,000 292,000 89,380 $ 202,620 Additional Information on Current Year Transactions a. Purchased equipment for $57,000 cash. b. Issued 40,000 shares of common stock for $5 cash per share. c. Declared and paid $102,620 in cash dividends. Prior Year $ 414,600 155,000 582,000 1,151,600 383,000 (133,000) $ 1,401,600 $30.600 $ 127,000 157,600 848,000 000 159,000 $ 1,401,600 < Note: Enter debits before credits. Date December 31 3 Record entry Reconstruct the journal entry for cash payments for inventory, incorporating the change in the related balance sheet account(s), if any. 3 Date December 31 5 Account Title Note: Enter debits before credits. Clear entry 4 5 6 7 Account Title 8 6 Debit 11 Credit Reconstruct the journal entry for depreciation expense, incorporating the change in the related balance sheet account(s), if any. View general Journal 7 8 ..... 11 Debit Credit