The following transactions took place during the year
1. Convertible bonds payable with a carrying amount of $300,000 along with conversion rights of $9,000 were exchanged for common shares.
2. The net income for the year was $410,000.
3. Depreciation charged on buildings was $90,000.
4. Recorded the investment income earned from investment in associate, Transot Ltd., using the equity method. Transot's earnings for the year were $123,000 and Mia Inc. owns 28% of the outstanding common shares.
5. Old office equipment was traded in on the purchase of new equipment, resulting in the following entry:

6. Dividends in the amount of $123,000 were declared. They are payable in January 2018.
Instructions
For each item, use journal entries to show the adjustments and reconciling items that would be made on Mia Inc.'s work sheet for a statement of cash flows.

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Equipment Accumulated Depreciation-Equipment 50,000 30,000 Equipment Cash Gain on Disposal of Equipment 40,000 34,000 6,000