(Worksheet Analysis of Selected Transactions) The transactions below took place during the year 2008.

Instructions Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows.

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1. Convertible bonds payable with a par value of $300,000 were exchanged for unissued common stock with a par value of $300,000. The market price of both types of securities was par. 2. The net income for the year was $410,000. 3. Depreciation expense for the building was $90,000. 4. Some old office equipment was traded in on the purchase of some dissimilar office equipment and the following entry was made. Office Equipment Accum. Depreciation-Office Equipment Office Equipment Cash Gain on Disposal of Plant Assets 50,000 30,000 40,000 34,000 6,000 The Gain on Disposal of Plant Assets was credited to current operations as ordinary income. 5. Dividends in the amount of $123,000 were declared. They are payable in January of next year.