The transactions below took place during the year 2020. 1. 2. Convertible bonds payable with a par value of $305,400 were exchanged for unissued common stock with a par value of $305,400. The market price of both types of securities was par. The net income for the year was $413,900. Depreciation expense for the building was $90,700. Some old office equipment was traded in on the purchase of some dissimilar office equipment, and the following entry was made. 3. 4. 49,200 29,800 Equipment Accum. Depreciation Equipment Equipment Cash Gain on Disposal of Plant Assets 39,300 33,600 6,100 The Gain on Disposal of Plant Assets was included in income before income taxes. Dividends in the amount of $125,100 were declared. They are payable in January of next year. 5. Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. V 0 0 0 0 2. 413900 413900 3. 90700 90700 4. 49200 Accumulated Depreciation-Building Accumulated Depreciation Equipment Bonds Payable Common Stock Dividends Payable Equipment Financing-Depreciation Expense Financing-Gain on Disposal of Plant Assets Financing-Net income Financing-Payment of Dividends Financing-Purchase of Equipment Investing-Depreciation Expense Investing-Gain on Disposal of Plant Assets Investing-Net income Investing-Payment of Dividends Investing-Purchase of Equipment Operating-Depreciation Expense Operating-Gain on Disposal of Plant Assets Operating-Net income 33600 0 0 0 0 5. 0 0 0 0