The balance sheet data of Franks Bike Shop, Inc. at December 31 is as follows:

2020 2019

Cash $ 7,500 $ 10,000

Accounts receivable (net) 82,000 87,500

Merchandise inventory 86,000 81,000

Prepaid expenses 9,000 12,000

Equipment 170,000 145,000

Accumulated depreciation equipment (45,000) (36,000)

Land 30,000 50,000

$339,500 $349,500

Accounts payable $ 44,500 $ 58,000

Accrued liabilities 11,000 9,000

Notes payable bank, short-term 0 50,000

Bonds payable 20,000 0

Common stock, $1 par 181,000 160,000

Retained earnings 83,000 72,500

$339,500 $349,500

Additional data:

1. Equipment was purchased for $21,000 in exchange for common stock, par $21,000, during the year; all other equipment was purchased for cash.

2. Land was sold for $31,500.

3. Cash dividends of $7,000 were declared and paid during the year.