Exercise 23-20

The transactions below took place during the year 2017.

1.		Convertible bonds payable with a par value of $301,500 were exchanged for unissued common stock with a par value of $301,500. The market price of both types of securities was par.
2.		The net income for the year was $408,700.
3.		Depreciation expense for the building was $88,300.
4.		Some old office equipment was traded in on the purchase of some dissimilar office equipment, and the following entry was made.

Equipment		49,400
Accum. DepreciationEquipment		30,600
Equipment				39,600
Cash				34,300
Gain on Disposal of Plant Assets				6,100

		The Gain on Disposal of Plant Assets was included in income before income taxes.
5.		Dividends in the amount of $120,600 were declared. They are payable in January of next year.

Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)