The transactions below took place during the year 2017. 1. Convertible bonds payable with a par value
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The transactions below took place during the year 2017.
1. | Convertible bonds payable with a par value of $299,800 were exchanged for unissued common stock with a par value of $299,800. The market price of both types of securities was par. | |
2. | The net income for the year was $412,200. | |
3. | Depreciation expense for the building was $88,500. | |
4. | Some old office equipment was traded in on the purchase of some dissimilar office equipment, and the following entry was made. |
Equipment | 50,700 | |||
Accum. Depreciation—Equipment | 29,900 | |||
Equipment | 40,600 | |||
Cash | 34,000 | |||
Gain on Disposal of Plant Assets | 6,000 |
The Gain on Disposal of Plant Assets was included in income before income taxes. | ||
5. | Dividends in the amount of $121,000 were declared. They are payable in January of next year. |
Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows.
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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