`

Chaplin Arts, Inc: 's comparative balance sheets for Decenber 31.2014 and 2013 follow. The following additional information about Chaplin Arr's soperations during 2013 is available: (a) net income. \$28,000; (b) building and equipment depreciation expense amounts, $15,000 and $3,000. respectively; (c) equipment that cost $13,500 with accumulated depreciation of $12,500 sold at a gain of \$5,300; (d) equipment purchases, $12.500; (c) patent amortization, $3,000; purchase of patent, $1,000; (f) funds borrowed by issuing notes payable, $25,000; notes payable repaid, $15,000;(g) land and building purchased for $162,000 by signing a mortgage for the total cost, ( h ) 1,500 shares of $20 par value common stock issued for a total of 550,000 ; and (i) paid cash dividends, $9,000. Required: a) Prepare Cash flow statement usiug in direct merhod ( (12 points) b) Journalize the transactions (8 points)