show depreciation expense & bank loan payable calculations with indirect statement

P13-7B The comparative, unclassified statement of financial position for Summerville Ltd shows the following balances at December 31 of cash Erect and 2018 2017 westions Assets Cash Term deposits (matures in 30 days) Accounts receivable Inventory Land Buildings Accumulated depreciation buildings Equipment Accumulated depreciation equipment Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Interest payable Dividends payable Bank loan payable current portion Bank loan payable non-current portion Common shares Retained earnings Total liabilities and shareholders' equity $ 17,000 52,000 50,000 68,000 200,000 943,000 (130,000) 190,000 (36,000) $1,354,000 $ 12,000 -0- 60,000 110,000 220,000 466,000 (150,000) 80,000 (20,000) $778,000 $ 86,000 6,000 18,000 3.000 52,000 673,000 396,000 120,000 $1,354,000 $ 68,000 4.000 14,000 2,000 40,000 418.000 172.000 60,000 $778,000 Additional information for 2018: 1. Net income was $89.000 2. A gain of $7,000 was recorded on the disposal of a small parcel of land No land was purchased during the year CO -In 4 - - Mrr -- 1 1. 943,000 466,000 (130.000) (150,000) 190,000 80.000 (36,000) (20.000) $1,354,000 $778,000 Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Total assets Liabilities and Shareholders' Equity Accounts payable Income tax payable Interest payable Dividends payable Bank loan payable current portion Bank loan payable non current portion Common shares Retained earnings Total liabilities and shareholders' equity $ 86,000 6,000 18,000 3,000 52.000 673,000 396,000 120,000 $1,354.000 $ 68,000 4,000 14,000 2,000 40,000 418,000 172,000 60,000 5778,000 Additional information for 2018: 1. Net income was $89.000 2. A gain of $7,000 was recorded on the disposal of a small parcel of land No land was purchased during the year 3. A gain on disposal of $78,000 was recorded when an old building was sold for $90,000 cash A new building was purchased for $564,000 and depreciation expense on buildings for the year was $55,000 4 Equipment costing $140,000 was purchased while a loss of $10,000 was recorded on equipment that was sold for $15,000. The equipment that was sold late in the year had accumulated depreciation of $5,000 5. The company took out $300,000 of new bank loans during the year 6. Dividends were declared during the year 7. Common shares were bought back by the company for $26,000, which was the amount at which they were originally issued, and additional shares were issued during the year Instructions (a) Prepare the statement of cash flows using the indirect approach