th security updates, foxes, and improvements, choose Check for Updates. Phase #3 Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2022. Use the indirect method to prepare the operating activities section. Issued 20,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $300,000. A down payment was made in the amount of $100,000 cash and a 10% 5- year note payable was signed for the difference. Purchased additional store equipment for $30,000 paying cash. The notes receivable were related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an item in the operating activities section of the statement of cash flows. Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section Used the cash proceeds from the bond issue to pay off the mortgage payable of $210,000. The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company reissued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Paid cash dividends of $5,615 to preferred and common stockholders Due Date: Monday, July 12, 2021 8:00 am . . . . none) Credits Debits 521,865.00 S 24,150.00 483.00 63.00 15,000.00 5,450.00 10,500.00 315.00 2,940,00 368,250.00 620,000.00 48,100.00 Be Prepared Adjusted Trial Balance January 31, 2022 Account ID Account Description 1001 Cash $ 1021 Accounts Receivable 1022 Allowance for Doubtful Ace 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paidin Capital in Excess of par Prefer 3111 Paldin Capital in Excess of par: Com 3121 Paldin Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 1001 Sales Revenue 94,500.00 18,250.00 108,750.00 16,625.00 72.775.00 25,000.00 7,500.00 4,778.00 200,000.00 375,000.00 10.500.00 412,500.00 115,000.00 15,375.00 265,750.00 180,000.00 88,485.00 180,000.00 525,000.00 Focus BE * $ 4 % 5 6 7 9 1,250.00 13,000.00 150.00 I 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense - General 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - General 5020 Depredation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat - General 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Selling 7001 interest Expense S 195,000.00 200.00 2,500.00 850.00 2,500.00 1,200.00 1,500.00 15,000.00 1,200.00 875.00 725.00 10,000.00 800.00 1,100.00 1,000.00 800.00 460.00 7,978.00 2,292,996.00 $ 2,292,996.00 Be Prepared Inc. Balance Sheet Focus MacBook Air GOD 7 % 5 & 7 8 Be Prepared Inc. Balance Sheet December 31, 2021 $ 26,256 7,875 210,000 244,125 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation Office Equipment Store Equipment Accumulated Depreciation Store Equipment Patents Total Assets Liabilities 28,875 Accounts Payable $ 42,000 Income Taxes Payable 52,500 Mortgage Payable 1,575 Total Liabilities 3,150 68,250 420,000 Stockholder's Equity (47,250) Preferred Stock 94,500 Common Stock (15,750) Paid in Capital in Excess of par: Preferred 78,750 Paid in Capital in Excess of par. Common (15,750) Retained Earnings 22.500 Total Stockholder's Equity 784,350 Total abilities and Stockholder's Equity $ 262,500 105,000 7,875 75,750 89.100 540, 225 784,350