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4. The comparative balance sheet for Journey Travel Services, Inc., for December 31, 2017 and 2016, is as follows: (Click the icon to view the comparative balance sheet.) The following information is taken from the records of Journey Travel Services, Inc.: (Click the icon to view the transaction data.) Prepare the statement of cash flows (indirect method) for Journey Travel Services, Inc., for 2017. Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and decreases in cash.) Journey Travel Services, Inc. Statement of Cash Flows-Operating Activities Section (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: (1) Adjustments to reconcile net income to cash basis: (2) (3) (4) (5) (6) (7) (8) (9) (10) Net cash provided by used for) operating activities Investing Activities: (11) (12) Net cash provided by (used for) investing activities Financing Activities: (13) (14) (15) Net cash provided by used for) financing activities Net increase (decrease) in cash Cash, beginning of the year MINI Cash, end of the year a. 4: Transactions Land was sold for $12,500. b. Equipment was purchased for cash. There were no disposals of equipment during the year. d. The common stock was issued for cash. Net income for 2017 was $30,000. f. Cash dividends paid during the year were $13,000. c. e. (1) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable O Increase in accounts receivable O Increase in prepaid insurance O Decrease in interest payable O Depreciation expense O Increase in income taxes payable O Increase in wages payable O Decrease in inventory O Dividends paid O Increase in interest payable O Issuance of stock for cash O Decrease in prepaid insurance Increase in accounts payable Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (2) O O Decrease in income taxes payable O Cash used to purchase equipment O Decrease in interest payable Decrease in accounts payable Decrease in inventory O Decrease in accounts receivable O Decrease in prepaid insurance Decrease in wages payable O Increase in accounts receivable O Depreciation expense O Increase in income taxes payable O Dividends paid O Increase in interest payable Increase in accounts payable Increase in inventory O Increase in prepaid insurance O Increase in wages payable Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (3) O O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory Decrease in accounts receivable O Decrease in prepaid insurance O Decrease in wages payable O Depreciation expense O Dividends paid Increase in accounts payable O Increase in accounts receivable O Increase in income taxes payable O Increase in interest payable O Increase in inventory Increase in prepaid insurance O Increase in wages payable O Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (4) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable O Decrease in interest payable Depreciation expense O Decrease in inventory O Dividends paid O Decrease in prepaid insurance O Increase in accounts payable O Increase in accounts receivable O Increase in prepaid insurance Increase in income taxes payable Increase in wages payable O Increase in interest payable O Issuance of stock for cash O Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (5) O Decrease in income taxes payable Decrease in wages payable O Increase in accounts receivable O Cash used to purchase equipment O Decrease in interest payable Depreciation expense O Increase in income taxes payable O Decrease in accounts payable O Decrease in inventory O Dividends paid O Increase in interest payable O Decrease in accounts receivable O Decrease in prepaid insurance Increase in accounts payable Increase in inventory O Increase in prepaid insurance O Increase in wages payable O Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (6) O O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory O Decrease in accounts receivable O Decrease in prepaid insurance O Decrease in wages payable O Depreciation expense O Dividends paid Increase in accounts payable O Increase in accounts receivable O Increase in income taxes payable O Increase in interest payable O Increase in inventory Increase in prepaid insurance O Increase in wages payable O Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (7) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable O Decrease in interest payable Depreciation expense O Decrease in inventory O Dividends paid O Decrease in prepaid insurance O Increase in accounts payable O Increase in accounts receivable O Increase in prepaid insurance Increase in income taxes payable Increase in wages payable O Increase in interest payable O Issuance of stock for cash O Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (8) O O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory O Decrease in accounts receivable O Decrease in prepaid insurance O Decrease in wages payable O Increase in accounts receivable O Increase in prepaid insurance Depreciation expense Increase in income taxes payable Increase in wages payable O Dividends paid O Increase in interest payable Issuance of stock for cash Increase in accounts payable Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (9) O O Decrease in income taxes payable O Cash used to purchase equipment Decrease in interest payable O Decrease in accounts payable O Decrease in inventory O Decrease in accounts receivable Decrease in prepaid insurance Decrease in wages payable O Increase in accounts receivable O Depreciation expense O Increase in income taxes payable O Dividends paid O Increase in interest payable Increase in accounts payable O Increase in inventory O Increase in prepaid insurance O Increase in wages payable Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (10) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable O Decrease in interest payable O Depreciation expense O Decrease in inventory Dividends paid O Decrease in prepaid insurance O Increase in accounts payable Increase in accounts receivable Increase in income taxes payable Increase in interest payable Increase in inventory O Increase in prepaid insurance Increase in wages payable O Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (11) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable O Decrease in interest payable O Decrease in inventory O Decrease in prepaid insurance O Decrease in wages payable Depreciation expense O Dividends paid O Increase in accounts payable O Increase in accounts receivable O Increase in prepaid insurance Increase in income taxes payable Increase in wages payable Increase in interest payable O Issuance of stock for cash O Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (12) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable Decrease in interest payable O Depreciation expense O Decrease in inventory O Dividends paid Decrease in prepaid insurance O Increase in accounts payable O Increase in accounts receivable O Increase in income taxes payable Increase in interest payable Increase in inventory O Increase in prepaid insurance O Increase in wages payable O Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (13) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable O Decrease in interest payable Depreciation expense Decrease in inventory Dividends paid O Decrease in prepaid insurance O Increase in accounts payable OOOO Increase in accounts receivable O Increase in prepaid insurance Increase in income taxes payable O Increase in wages payable Increase in interest payable Issuance of stock for cash Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (14) O O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable Decrease in income taxes payable Decrease in wages payable O Decrease in interest payable O Depreciation expense O Decrease in inventory O Dividends paid O Decrease in prepaid insurance O Increase in accounts payable OOOO Increase in accounts receivable Increase in income taxes payable Increase in interest payable Increase in inventory Increase in prepaid insurance O Increase in wages payable O Issuance of stock for cash O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land (15) O Cash used to purchase equipment O Decrease in accounts payable O Decrease in accounts receivable O Decrease in income taxes payable Decrease in wages payable O Decrease in interest payable Depreciation expense O Decrease in inventory O Dividends paid O Decrease in prepaid insurance O Increase in accounts payable OO O Increase in accounts receivable O Increase in prepaid insurance Increase in income taxes payable Increase in wages payable Increase in interest payable O Issuance of stock for cash Increase in inventory O Loss on sale of land O Net income O Proceeds from issuance of long term notes O Proceeds from the sale of land 2 4. A B 1 Journey Travel Services, Inc. 2 Comparative Balance Sheets 3 December 31, 2017 and 2016 4 Assets 2017 2016 5 Current assets: 6 Cash $ 40,000 $ 20,000 7 Accounts receivable 77,000 82,000 8 Inventory 57,000 21,000 9 Prepaid insurance 9,000 13,000 10 Total current assets $ 183,000 $ 136,000 11 12 Land $ 104,000 $ 120,000 13 Equipment 83,000 53,000 14 Less: Accumulated depreciation (14,000) (8,000) 15 Total assets $ 356,000 $ 301,000 16 17 Liabilities 18 Current liabilities: 19 Accounts payable $ 30,000$ 32,000 20 Wages payable 26,000 24,000 21 Interest payable 11,000 10,000 22 Income taxes payable 7,000 5,000 23 Total current liabilities $ 74,000 $ 71,000 24 25 Notes payable (long-term) 95,000 85,000 26 Total liabilities $ 169,000 $ 156,000 27 28 Stockholders' equity 29 Common stock $ 145,000 $ 120,000 30 Retained earnings 42,000 25,000 31 Total stockholders' equity $ 187,000 $ 145,000 32 33 Total liabilities and equity $ 356,000 $ 301,000