The records of HKL Company provided the following information for the year ended 31 December 20X8:

Additional information:
a. Sold equipment for cash (cost, $ 15,000; accumulated depreciation, $ 9,000).
b. Purchased land, $ 20,000 cash.
c. Acquired land for $ 21,000 and issued common shares as payment in full.
d. Acquired equipment, cost $ 16,000; issued a $ 16,000, three- year, interest- bearing note payable.

Required:
Prepare the SCF, using the two- step indirect method. Analyze every account to ensure all changes are included. Assume unexplained changes are from logical sources. Include required note disclosure of non- cash transactions. Prepare separate disclosure of cash paid for interest and income tax, as is required byASPE.

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Statement of Comprehensive Income For the year ended 31 December 20x8 Sales revenue Cost of goods sold Depreciation expense Insurance expense Interest expense Salaries and wages expense Remaining expenses Loss on sale of equipment Income tax expense Net earnings and comprehensive income $180,000 (131,000) (10,000) (1,000) (2,000) (12,000) (13,000) (2,000) (8 $1000 Statement of Financial Position As of 31 December 20X8 20X7 Cash Accounts receivable Inventory Prepaid interest Buildings and equipment Accumulated depreciation Land $ 61,000 35,000 28,500 10,000 2,400 80,000 31,500 15,000 1,400 81,000 (21,000) 81.100 U (20,000) 40,100 250,000 $176,000 Total Accounts payable Wages payable Income tax payable Notes payable, long-temm Common shares Retained earnings $21,000 18,000 4,000 1,000 6,000 56,000 143,000 23,000 30,000 100,000 24.000 Total $250.000 $176.000