Furst Corporation had the following transactions.

1. Paid salaries of \(\$ 14,000\).

2. Issued 1,000 shares of \(\$ 1\) par value common stock for equipment worth \(\$ 16,000\).

3. Sold equipment (cost \(\$ 10,000\), accumulated depreciation \(\$ 6,000\) ) for \(\$ 3,000\).

4. Sold land (cost \(\$ 12,000\) ) for \(\$ 16,000\).

5. Issued another 1,000 shares of \(\$ 1\) par value common stock for \(\$ 18,000\).

6. Recorded depreciation of \(\$ 20,000\).

Instructions

For each transaction above,

(a) prepare the journal entry, and

(b) indicate how it would affect the statement of cash flows. Assume the indirect method.