The transactions below took place during the year 2014.
1. Convertible bonds payable with a carrying and par value of $500,000 were exchanged for unissued common stock with a par value of $100,000.
2. The net income for the year was $1,250,000.
3. Depreciation charged on the building and equipment was $491,000.
4. Five delivery vehicles were traded in on the purchase of a fork lift and the following entry was made.

The Gain on Disposal of Plant Assets was credited to current operations as ordinary income.
5. Dividends in the amount of $200,000 declared in 2013 were paid during the current year. In addition, dividends of $100,000 were declared and paid during the current year.

Show by journal entries the adjustments that would be made on a worksheet for a statement of cashflows.

  • CreatedJune 07, 2013
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