The transactions below took place during the year 2014.\n1. Convertible bonds payable with a par value of $300,000 were exchanged for unissued common s
The transactions below took place during the year 2014.
\r\n1. Convertible bonds payable with a par value of $300,000 were exchanged for unissued common stock with a par value of $300,000. The market price of both types of securities was par.
\r\n2. The net income for the year was $410,000.
\r\n3. Depreciation expense for the building was $90,000.
\r\n4. Some old office equipment was traded in on the purchase of some dissimilar office equipment, and the following entry was made.
\r\nEquipment 50,000
\r\nAccum. Depreciation—Equipment 30,000
\r\nEquipment 40,000
\r\nCash 34,000
\r\nGain on Disposal of Plant Assets 6,000
\r\nThe Gain on Disposal of Plant Assets was credited to current operations as ordinary income.
\r\n5. Dividends in the amount of $123,000 were declared. They are payable in January of next year.
\r\nInstructions
\r\nShow by journal entries the adjustments that would be made on a worksheet for a statement of cash flows.