The management of Banciu Corporation provides you with the comparative analysis of changes in account balances between December 31, 2016, and December 31, 2017, appearing below.

Supplemental Information:
a. The following table presents a comparative analysis of retained earnings as of December 31, 2016, and December 31, 2017.

b. On December 10, 2017, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 2018.
c. Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.
d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.
e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 2017.
f. During 2017, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.
g. During 2017, Banciu purchased $180,000 of securities that are being held for future plant expansion.
Required:
1. Prepare the entries (in general journal form) that would be entered into T-accounts needed to prepare a statement of cash flows from the data given. For example, the first entry would be
DR.......Cash (Operations-Net income) . . . . . . . . . . . . . . . . . . . . . . . . . . $234,000
CR Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $234,000
2. Prepare a statement of cash flows for Banciu Corporation for 2017. Use the indirect method for presenting cash flow from operations.

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December 31 2017 2016 Debit balances Accounts receivable Cash Inventories Leasehold i Machinery and equipment Patents Securities held for plant expansion Totals $ 306,000 174,000 579,600 104,400 1,112,400 33,360 180,000 $2,489,760 $ 327,600 223,200 645,600 104,400 776,400 36,000 mprovements $2,113,200 Credit balances Accounts payable Accumulated amortization of leasehold $279,360 126,000 69,600 58,800 improvements Accumulated depreciation of machinery and equipment Allowance for uncollectible accounts Cash dividend payable Common stock Current portion of 6% serial bonds payable Preferred stock Retained earnings 6% Serial bonds payable-noncurrent portion Totals 499,200 19,200 48,000 600,000 60,000 108,000 506,400 300,000 446,400 20,400 600,000 60,000 120,000 321,600 360,000 $2,489,760 2,113,200 December 31, 2017 2016 $157,200 206,400 363,600 (42,000) Beginning balance 321,600 $15 234,000 Net income Dividends declared Ending balance 555,600 (48,000) IAN) $506 400 321. 600