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 $4...

1 Bonds Payable 500000 Common Stock 100000 Additional ...

The transactions below took place during the year 2014. 1. Convertible bonds payable with a carrying and

Question:

The transactions below took place during the year 2014.
1. Convertible bonds payable with a carrying and of $500,000 were exchanged for unissued with a 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.

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

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...