Partially Completed Worksheet (Spreadsheet) – The Hanks Company has prepared the following changes in account balances for the worksheet to support its 2007 statement of cash flows:
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A |
B |
C |
D |
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Worksheet Entries |
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Debit |
Credit |
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Account Title |
Increase (Decrease) |
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Debits |
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Cash |
$830 |
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Noncash Accounts |
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Accounts receivable |
290 |
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Inventory |
1,280 |
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Investments |
1,550 |
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Land |
700 |
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Equipment |
2,300 |
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Patents (net) |
100 |
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Total |
$4,870 |
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Credits Accumulated depreciation |
$350 |
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Accounts payable |
120 |
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Bonds payable |
2,000 |
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Premium on bonds payable |
300 |
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Common stock, $2 par |
480 |
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Premium on common stock |
1,120 |
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Retained earnings |
500 |
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Total |
$4,870 |
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Additional information: The net income was $1,300. Depreciation expense was $350 and patent amortization expense was $100. At the end of 2007, long-term investments were purchased at a cost of $1,550. Land that cost $700 was sold for $900.
On December 31, 2007, bonds payable with a face value of $2,000 were issued for equipment valued at $2,300. Two hundred shares of common stock were issued at $7 per share. Forty shares of common stock were issued as a “small” stock dividend, the relevant market price being $5 per share. Cash dividends declared and paid totaled $600.
Required
On the basis of the preceding information, complete the worksheet (spreadsheet).