On December 31, 2010, a fire destroyed a significant portion of the Richey Company accounting records. Only the January 1, 2010 balance sheet, the statement of cash flows for 2010, and several additional documents were saved as follows:

Statement of Cash Flows
For Year Ended December 31, 2010

Schedule 1: Investing and Financing Activities Not Affecting Cash
Investing Activities
Acquisition of land by issuance of preferred stock (40 shares) ....$(4,800)
Financing Activities
Issuance of preferred stock to acquire land ............ 4,800
The remaining financial documents reveal the following additional data:
1. The new building was acquired on December 31, 2010. The related mortgage requires equal annual repayments of the principal over a five-year period beginning December 31, 2012.
2. The company issued a stock dividend of 200 shares of common stock on December 14, 2010. On the date of declaration, the stock was selling for $18 per share.
3. The equipment that was sold had an original cost of $1,900.

Required
Prepare a December 31, 2010 balance sheet for Richey Company. Include supportingcalculations.

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Balance Sheet January 1, 2010 Current assets: Cash Accounts receivable Inventories Prepaid items $1,900 5, 100 13,900 1,300 $22,200 Total current assets Property, plant, and equipment: Land Buildings Equipment $12,000 $60,000 20,000 80,000 Less: Accumulated depreciation Total fixed assets (29,000) 51,000 $63,000 7,100 $92,300 Patents (net) Total assets Liabilities Current liabilities: Accounts payable Income taxes payable Miscellaneous payables $5,500 4,100 1,200 $10,800 Total current liabilities Long-term liabilities: 10% bonds payable (due 12/31/2019) $15,000 Less: Discount on bonds payable Total liabilities ,000 14,000 $24,800 Stockholders' Equity Preferred stock, $100 par Premium on preferred stock Common stock, $10 par Premium on common stock Retained earnings 17,000 1,500 18,500 S14,000 11,200 25,200 23,800 $67,500 $92,300 Total stockholders' equity Total labilities and stockholders' equity Net Cash Flow From Operating Activities Net income $10,000 Adjustments for differences between income flows and cash flows from operating activities: Add: Depreciation expense Patent amortization expense Loss on sale of land Decrease in accounts receivable (net) Decrease in inventories Increase in income taxes payable Increase in miscellaneous pavables Bond discount amortization 5,100 600 400 1,100 3,010 190 200 100 (180) (1,100) (120) (400) Less:Gain on sale of equipment Gain on sale of patent Increase in prepaid items Decrease in accounts payable 18,900 Net cash provided by operating activities Cash Flows From Investing Activities Purchase of building by issuance of mortgage and cash Less: Issuance of mortgage Payment for purchase of building Proceeds from sale of lanod Proceeds from sale of equipment Proceeds from sale of patent Net cash used for investing activities Cash Flows From Financing Activities Proceeds from issuance of common stock (150 shares) Payment of dividends Net cash used for financing activities Net Decrease in Cash (see Schedule 1) Cash, January 1, 2010 Cash, December 31, 2010 $(43,000) 20,000 $(23,000) 2,800 500 2,100 (17,600) $ 3,000 (5,000) (2,000) s (700) 1,900 $ 1,200