Data for Harvey Company are presented in E23-18B.
In E23-18B, the accounts below appear in the ledger of Harvey Company.

Instructions
Prepare entries in journal form for all adjustments that should be made on a worksheet for a statement of cashflows.

Retained Earnings Dr Cr. Bal Jan. 1, 2014 Credit Balance Dec 1 Dec. 31 Declare and pay dividends Net Income for 2012 $140,000 100,000 $40,000 $82,600 182,600 Machinery Dr. Cr. Bal Jan. 1, 2014 Debit Balance Mar. 31 Sept. 25 $740,000 896,000 $156,000 Purchase of Machinery Machinery Sold Accumulated Depreciation $202,000 694,000 Machinery Dr Cr Bal Jan. 1, 2014 Credit Balance June 18 Sept. 25 Extraordinary Repairs Accum. Depreciation on $264,000 208,000 $56,000 Machinery Sold Depreciation for 2012 60,000 148,000 Dec. 31 $82,500 230,500