On January 1, we are authorized to issue 100,000 shares of our 1.00 common stock.  We issued 50,000 shares for $80/share; and issued a $100,000 bond for either 1) $96,000 or 2) 104,000.  The market rate was 9% and the stated rate was 10%.  The bond is a 10 year bond that pays interest on 1/1 of each year.     

Inventory includes the following:  Beginning balance of $0.  On January 3 we purchased  $22,000 (1000 units at $22) worth of inventory.  1,000 units of inventory was purchased on June 1 for $23/unit; and finally a 1,000 units on December 1 for $24/unit.  2,000 units were sold for $300/unit on December 20^th ($120,000 in cash was received and the remaining will be collected in 2017).  The rate used for determining uncollectible has been set at 10% of gross credit sales. The company uses perpetual FIFO.      

The number of supplies purchased was $40,000.  The end of the year supply count showed that there was a $10,000 balance.  All supplies were purchased with credit.  ½ the liability was paid by year-end.  

Equipment1 was purchased at the beginning of the year for $50,000 cash.  No salvage/residual value.  Straight-line depreciation is used over a 10-year life.  Equipment2 was also purchased at the beginning of the year for 550,000 (no salvage) 10 year life.  We decided to use SL method.  The equipment2 required a $5,000 repair by year-end.  Equipment3 was purchased on 6/1 for 100,000 (20,000 salvage value).  We decided to use SYD as a depreciation method.  At 12/31 it required capital improvements of $40,000 which we signed a note to pay in 9 months.  

Building was purchased on 4/1 for $900,000 cash.  Salvage/residual value of $100,000 exists.  Straight-line is used over a 20-year life. 

We needed funds, so we signed a note on 7/1 for $100,000.  We agreed to pay back the note at the end of the next year.  Interest rate is10%, payable 12/31.  The note is short-term.

On 10/1 we started to create a patent.  Costs of salaries related to the creation of the patent were $50,000 ($5,000 of this remained unpaid by year-end).  This patent has an expected life of 10 years. We purchased a second patent for $80,000 with an expected live of 8 years.  

On 6/30 we issued another 25,000 shares of our stock for $70/share.

On 10/1 we sold equipment1 (that was purchased at the beginning of the year).  At the time of the sale, the asset was on the books at a historical cost of $50,000.   We sold it for $40,000 (we received cash).

On 11/1 we purchased $100,000 of equity of another company.  It paid us $2,000 in dividends by year-end.  

Dividends paid during the year were $79,500. The equity of the other company was worth $60,000 at year-end 2016.  The tax rate is 21%