A)	Recommended: Prepare journal entries for the 6 items below. Complete the RE T-account.
1	No dividends were received on equity method investments during the year, but $3,000 of investment
	income was recognized (Auto Parts, Inc.'s ownership share of the investee's net income).
2	Equipment was purchased for $19,000 in exchange for common stock, par $19,000, during the year.
3	All other equipment purchased was for cash.
4	Land was sold for $31,500.
5	Cash dividends of $5,000 were declared and paid during the year.
6	A stock dividend of 2,000 shares was declared and distributed during the year. The market value
	of the common stock at the time was equal to its par value.

B) Complete the indirect statement of cash flows for 2020

Statement of Cash Flows Exercise Auto Parts, Inc. -----> Hint: See the T-account on the next tab for a review of this. Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equity method investments Equipment Accumulated depreciation -- equipment Land Total assets Accounts payable Accrued expenses Notes payable -- bank, short-term Bonds payable Common stock, $1 par Retained carnings Total liabilities & shareholders' cquity 2020 $7,500 82,000 86,000 9,000 20,000 150,000 (45,000) 30,000 $339,500 $44,500 11,000 2019 $10,000 87,500 81,000 12,000 17,000 128,000 (36,000) 50,000 $349,500 $58,000 9,000 50,000 Change ($2,500) (5,500) 5,000 (3,000) 3,000 22,000 (9,000) (20,000) ($10,000) ($13,500) 2,000 (50,000) 20,000 21,000 10,500 ($10,000) -----> Hint: Treat this as a financing item due to the formal nature of notes. 20,000 181,000 83,000 $339,500 160,000 72,500 $349,500 Retained Earnings