507,000 Computer Services Company Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold S150,000 Operating expenses (excluding depreciation) 111.000 Depreciation expense 9,000 Loss on disposal of plant assets 3,000 Interest expense 42.000 Income before income tax Income tax expense Net income 315.000 192.000 47,000 $145.000 Additional information for 2020: 1. Depreciation expense was comprised of $6,000 for building and $3.000 for equipment. 2. The company sold equipment with a book value of $7,000 (cost $8,000, less accumulated depreciation $1,000) for $4,000 cash. 3. Issued $110,000 of long-term bonds in direct exchange for land. 4. A building costing S120,000 was purchased for cash. Equipment costing $25,000 was also purchased for cash. 5. Issued common stock for $20,000 cash. 6. The company declared and paid a $29.000 cash dividend. Required: Prepare a full cash flow (all the sections) using the indirect method also prepare the journal entry for #2 - In the additional information above Computer Services Company Comparative Balance Sheets December 31 Change in Account Balance Increase/Decrease 2020 2019 $ 55,000 20,000 15,000 5,000 $ 33,000 30,000 10,000 1,000 $ 22,000 Increase 10,000 Decrease 5,000 Increase 4.000 Increase Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Property, plant, and equipment Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Total assets 130,000 160,000 (11,000) 27,000 (3.000) $398,000 20,000 40,000 (5,000) 10,000 (1.000) $138,000 110,000 Increase 120,000 Increase 6,000 Increase 17.000 Increase 2,000 Increase $ 28,000 6,000 $ 12,000 8,000 $ 16,000 Increase 2,000 Decrease Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Long-term liabilities Bonds payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 130,000 20,000 110,000 Increase 70,000 164,000 50,000 48,000 20,000 Increase 116,000 Increase $398,000 $138,000