Question 1 [70 points] Callaho Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding Callaho Inc. and its activities during 2015 follow in (a) through (f): a. Assume all accounts have normal balances. b. $13,000 of the long-term notes payable will be paid during 2016. c. Equipment was sold for cash of $31,100. d. Old machinery was sold for cash of $27,300. New machinery was purchased for $30,000 cash. e. Share capital was issued for cash. f. Cash dividends were declared and paid. Using the information provided, prepare a statement of changes in equity, a classified balance sheet, and a statement of cash flows (using the indirect method) for the year ended December 31, 2015. Callaho Inc. Adjusted Trial Balance (select one) Statement of Changes in Equity (select one) Share Retained Total Capital Earnings Equity Account December 31 2015 2014 Accounts Payable Accounts Receivable 58,320 73,000 99,700 89,000 Accumulated Depreciation, Equipment 7,400 27,000 Accumulated Depreciation, Machinery Allowance for Doubtful Accounts Depreciation Expense, Equipment Depreciation Expense, Machinery. Cash Cash Dividends 6,600 95,500 (select one) 7,700 6,000 Balance Sheet 7,000 7,000 (select one) 12,300 12,300 219,120 145,000 35,000 35,000 Equipment 47,400 107,000 Machinery 43,800 140,000 Merchandise Inventory_ 122,600 148,500 Long-term Notes Payable 67,930 76,000 Other Expenses (including losses) 730,000 40,000 Retained earnings Revenues (including gains) Share capital 68,000 60,000 790,300 102,300 282,000 252,000 (select one) Statement of Cash Flows (select one) Unearned Revenue 28,670 32,000