\begin{tabular}{|l|l|l|l|} \hline & & \multicolumn{2}{|c|}{ Worksheet Entries } \\ \hline Account Titles & Chanse & Debit & Credit \\ \hline Debit & & & \\ \hline Cash & & & \\ \hline Account receivable & & & \\ \hline Inventory & & & \\ \hline Equity method investment & & & \\ \hline Property, plant, and equipment & & & \\ \hline Patents & & & \\ \hline Discount on bonds payable & & & \\ \hline & & & \\ \hline Credit & & & \\ \hline Accumulated depreciation & & & \\ \hline Accounts payable & & & \\ \hline Salaries payable & & & \\ \hline Dividends payable & & & \\ \hline Income tax payable & & & \\ \hline & & & \\ \hline Deferred tax lability & & & \\ \hline & & & \\ \hline Bonds payable & & & \\ \hline Preferred stock, Sl00 par per share & & & \\ \hline Additional paid-in capital-preferred stock & & & \\ \hline Common stock, Stoo par per share & & & \\ \hline & & & \\ \hline Additional paid-in capital-common stock & & & \\ \hline & & & \\ \hline Retained earnings & & & \\ \hline & & & \\ \hline Cash Flow from Operating Activities & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Page 2 Problem 3: A spreadsheet for a statement of cash flows is presented below along with the following additionalinformation. Net income was $508,000. Dividends declared $100,000, payable January 31 of next year, On January 31 of current year, $90,000 was paid for dividends dectared for last year. 5-year Bonds with a face value of $60,000 were issued for $50,000 in the year. One year of discount amortization using the straight-fine method was recorded. 1,000 shares of common stocks ( $100 par per share) were issues for $150,000. Purchased 30% interest in Kent Company for $90,000, and classified it as Equity method investment. Kent Company reported not income of $50,000, and declared no dividend for the year. The preferred stock was converted to an equal number of common shares. The book value method was used: Property, plant, and equipment costing $200,000 was sold for $140,000. The asset had an accumulated depreciation of 180,000 at the date of sale. Required: Complete the Worksheet. \begin{tabular}{ll} Account Tities & Change \\ \hline Debit & \\ \hline Cash & 99,000 \\ \hline Account receivable & 400,000 \\ \hline Inventory & 150,000 \\ \hline Equity method investment & 105,000 \\ \hline Property, plant, and equipment & 244,000 \\ \hline Patents & 20,000 \\ \hline Discount on bonds payable & 8,000 \end{tabular} Credit AccumulateddepreciationAccountspayableSalariespayableDividendspayableIncometaxpayableDeferredtaxliabilityBondspayablePreferredstock,$100parpershare400,00050,000300,000200,00010,00010,0002,00060,000 Additional paid-in capital-preferred 100,000 stock Common stock, $100 par per share 500,000 Additional paid-in capital-common 150,000 stock Retained earnings 408,000 \begin{tabular}{|l|l|l|l|} \hline & & \multicolumn{2}{|c|}{ Worksheet Entries } \\ \hline Account Titles & Chanse & Debit & Credit \\ \hline Debit & & & \\ \hline Cash & & & \\ \hline Account receivable & & & \\ \hline Inventory & & & \\ \hline Equity method investment & & & \\ \hline Property, plant, and equipment & & & \\ \hline Patents & & & \\ \hline Discount on bonds payable & & & \\ \hline & & & \\ \hline Credit & & & \\ \hline Accumulated depreciation & & & \\ \hline Accounts payable & & & \\ \hline Salaries payable & & & \\ \hline Dividends payable & & & \\ \hline Income tax payable & & & \\ \hline & & & \\ \hline Deferred tax lability & & & \\ \hline & & & \\ \hline Bonds payable & & & \\ \hline Preferred stock, Sl00 par per share & & & \\ \hline Additional paid-in capital-preferred stock & & & \\ \hline Common stock, Stoo par per share & & & \\ \hline & & & \\ \hline Additional paid-in capital-common stock & & & \\ \hline & & & \\ \hline Retained earnings & & & \\ \hline & & & \\ \hline Cash Flow from Operating Activities & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Page 2 Problem 3: A spreadsheet for a statement of cash flows is presented below along with the following additionalinformation. Net income was $508,000. Dividends declared $100,000, payable January 31 of next year, On January 31 of current year, $90,000 was paid for dividends dectared for last year. 5-year Bonds with a face value of $60,000 were issued for $50,000 in the year. One year of discount amortization using the straight-fine method was recorded. 1,000 shares of common stocks ( $100 par per share) were issues for $150,000. Purchased 30% interest in Kent Company for $90,000, and classified it as Equity method investment. Kent Company reported not income of $50,000, and declared no dividend for the year. The preferred stock was converted to an equal number of common shares. The book value method was used: Property, plant, and equipment costing $200,000 was sold for $140,000. The asset had an accumulated depreciation of 180,000 at the date of sale. Required: Complete the Worksheet. \begin{tabular}{ll} Account Tities & Change \\ \hline Debit & \\ \hline Cash & 99,000 \\ \hline Account receivable & 400,000 \\ \hline Inventory & 150,000 \\ \hline Equity method investment & 105,000 \\ \hline Property, plant, and equipment & 244,000 \\ \hline Patents & 20,000 \\ \hline Discount on bonds payable & 8,000 \end{tabular} Credit AccumulateddepreciationAccountspayableSalariespayableDividendspayableIncometaxpayableDeferredtaxliabilityBondspayablePreferredstock,$100parpershare400,00050,000300,000200,00010,00010,0002,00060,000 Additional paid-in capital-preferred 100,000 stock Common stock, $100 par per share 500,000 Additional paid-in capital-common 150,000 stock Retained earnings 408,000