The following transactions took place during the year 2011 for Mia Inc.
1. Convertible bonds payable with a carrying amount of $300,000 along with conversion rights of $9,000 were exchanged for unissued common shares.
2. The net income for the year was $410,000.
3. Depreciation charged on the building was $90,000.
4. Recorded the investment income earned from investment in Transot Ltd. using the equity method. Transot earnings for the year were $123,000 and Mia Inc. owns 28% of the outstanding common shares.
5. Old office equipment was traded in on the purchase of new equipment, resulting in the following entry:

6. Dividends in the amount of $123,000 were declared. They are payable in January 2012.
Instructions
For each item, use journal entries to show the adjustments and reconciling items that would be made on Mia Inc.€™s work sheet for a statement of cash flows.

Transcribed Image Text:

Office Equipment Accumulated Depreciation Office Equipment 50,000 30,000 Office Equipment Cash Gain on Disposal of Plant Assets 40,000 34,000 6,000