The following financial statements and additional information are reported IKIBAN INC
Comparative Balance Sheets
June 30, 2017 and 2016
2017 2016
Assets
Cash $ 73,100 $ 68,000
Accounts receivable, net 101,000 75,000
Inventory 87,800 122,500
Prepaid expenses 6,800 10,200
Total current assets 268,700 275,700
Equipment 148,000 139,000
Accum. depreciation-Equipment 39,000 21,000
Total assets $377,700 $393,700
Liabilities and Equity
Accounts payable $49,000 $66,000
Wages payable 8,400 19,800
Income taxes payable 5,800 8,600
Total current liabilities 63,200 94,400
Notes payable (long term) 54,000 84,000
Total liabilities 117,200 178,400
Equity
Common stock, $5 par value 268,000 184,000
Retained earnings 7,500 31,300
Total liabilities and equity $377,700 $393,700
A $30,000 note payable is retired at its $30,000 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 $81,600 cash. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit