Audio City, Incorporated, is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income $ 62,600 15,400 22,600 225,000 (61,500) $ 264,100 $ 8,100 2,100 60,500 102,000 91,400 $ 264,100 $ 67,200 20,500 20,500 151,000 (46,000) $ 213,200 $ 19, 200 1,000 76,000 71,000 46,000 $ 213,200 $ 203,000 91,000 61,500 $ 50,500 Additional Data: a. Bought equipment for cash, $74,000. o. Paid $15,500 on the long-term notes payable. c. Issued new shares of stock for $31,000 cash. . Dividends of $5,100 were paid in cash. e. Other expenses included depreciation, $15,500; salaries and wages, $20,500; taxes, $25,500. f. Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) AUDIO CITY INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: The following transactions and adjusting entries were completed by a local delivery company called Fast Delivery. The company uses straight-line depreciation for delivery vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for franchise rights. a January 2, 2020 Paid $171,000 cash to purchase a small warehouse building near the airport, The building has an estimated life of 20 years and a residual value of $3,700. July 1, 2020 Paid $36,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $7,200. October 2, 2020 Paid $700 cash to paint a small office in the warehouse building. October 13, 2020 Paid $150 cash to get the oil changed in the delivery van. December 1, 2020 Paid $96,000 cash to UPS to begin operating Fast Delivery business as franchise using the name The UPS Store. This franchise right expires in five years. December 31, 2020 Recorded depreciation and amortization on the delivery van, warehouse building, and franchise right. June 30, 2021 Sold the warehouse building for $137,000 cash. (Record the depreciation on the building prior to recording its disposal.) December 31, 2021 Recorded depreciation on the delivery van and amortization on the franchise right. Determined that the franchise right was not impaired in value. Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the purchase of a warehouse building for $171,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2020 Record entry View general journal Clear entry