On December 31, 2013, a fire destroyed a significant portion of Richey Company's accounting records. Only the January 1, 2013, balance sheet, the statement of cash flows for 2013, and several additional documents were saved as follows:

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:
• The new building was acquired on December 31, 2013. The related mortgage requires equal annual repayments of the principal over a 5-year period beginning December 31, 2015.
• The company issued a stock dividend of 200 shares of common stock on December 14, 2013. On the date of declaration, the stock was selling for $18 per share.
• The equipment that was sold had an original cost of $1,900.
Required:
Prepare a December 31, 2013, balance sheet for Richey. Include supporting calculations.

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Balance Sheet January 1, 2013 Assets Current assets Cash Accounts receivable Inventories Prepaid items $ 1,900 5,100 13,900 1,300 Total current assets Property, plant, and equipment Land Buildings Equipment Less: Accumulated depreciation $12,000 $60,000 20,000 $80,000 (29,000) 51,000 $63,000 $ 7,100 $92,300 Total property, plant, and equipment 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 (1,000) 14,000 Total liabilities Shareholders' Equity Preferred stock, $100 par Additional paid-in capital on preferred stock Common stock, $10 par Additional paid-in capital on common stock Retained earnings $17,000 1,500 $18,500 14,000 11,200 25,200 23,800 Total shareholders' equity Total Liabilities and Shareholders' Equity $92,300 Statement of Cash Flows For Year Ended December 31, 2013 Operating Activities $10,000 Net income Adjustments for differences between income flows and cash flows from operating activities Add: Depreciation expense 5,100 600 400 1,100 Patent amortization expense Loss on sale of land Decrease in accounts receivable (net) Decrease in inventories Increase in income taxes payable Increase in miscellaneous payables Bond discount amortization 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 Net cash provided by operating activities $18,900 Investing Activities Purchase of building by issuance of mortgage and cash Less: Issuance of mortgage Payment for purchase of building Proceeds from sale of land Proceeds from sale of equipment Proceeds from sale of patent Net cash used for investing activities $(43,000) 20,000 2,800 500 2,100 (17,600) Financing Activities Proceeds from issuance of common stock (150 shares) Payment of dividends Net cash used for financing activities $ 3,000 (5,000) Net decrease in cash (see Schedule 1) Cash, January 1, 2013 Cash, December 31, 2013 (2,000) S (700) 1,900 $ 1,200