Exercise 12-8 Shown below are comparative balance sheets for Schmitt Company SCHMITT COMPANY Balance Sheets 2013 $ 40,700 140,600 349,650 185,000 370,000 2014 ssets Cash Accounts receivable $125,800 162,800 308,950 148,000 481,000 Land Equipment Accumulated depreciation- equipment Total Liabilities and Stockholder (122,100) (59,200) $1,104,450 $1,026,750 Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total s 79,550 370,000 321,900 255,300 $1,104,450 $1,026,750 s 72,150 277,500 399,600 355,200 Additional information 1. Net income for 2014 was $172,050 2. Depreciation expense was $62,900 3. Cash dividends of $72,150 were declared and paid 4. Bonds payable amounting to $92,500 were redeemed for cash $92,500 5. Common stock was issued for $77,700 cash. 6. No equipment was sold during 2014 7. Land was sold for its book value