INCOME STATEMENT

Sales 5,000
Gain on Sale of Land/Building 2,000
Cost of Goods Sold (3,000)
Gross Profit on Sales 4,000
Operating Expenses:
Depreciation 300
Other 500     (800)
Net Income 3,200
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  BALANCE SHEETS
2012 2011
ASSETS
Cash 500 350
Accounts Receivable 300 440
Inventory 900 750
Prepaid Expenses 100 85
Land 2,500 2,700
Building 2,500 3,000
Accumulated Depreciation (670) (370)

Total Assets 6,130 6,955

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EQUITIES
Accounts Payable 420 855
Accrued Payables — 500
Bonds Payable 510 3,600
Common Stock 1,700 1,500
Retained Earnings 3,500 500

Total Equities 6,130 6,955   _________________________________________________________________

Other information

a. Land with a cost basis of $200 and Buildings with a cost basis of $500 were sold for $2,700 cash. No deprecation had been recorded on these assets.
b. Paid off $3,090 of bonds payable during the year.
c. A $200 cash dividend was declared and paid
d. Common stock was issued for $200 cash.