Problem 5-7 (Part Level Submission)

Ayayai Inc. had the following balance sheet at December 31, 2016.

AYAYAI INC. BALANCE SHEET DECEMBER 31, 2016 Cash $ 23,940 Accounts payable $ 33,940 Accounts receivable 25,140 Bonds payable 44,940 Investments 32,000 Common stock 103,940 Plant assets (net) 84,940 Retained earnings 27,140 Land 43,940 $209,960 $209,960

During 2017, the following occurred. 1. Ayayai liquidated its available-for-sale investment portfolio at a loss of $8,940. 2. A tract of land was purchased for $41,940. 3. An additional $30,000 in common stock was issued at par. 4. Dividends totaling $13,940 were declared and paid to stockholders. 5. Net income for 2017 was $38,940, including $15,940 in depreciation expense. 6. Land was purchased through the issuance of $33,940 in additional bonds. 7. At December 31, 2017, Cash was $74,140, Accounts Receivable was $45,940, and Accounts Payable was $43,940.