Textbook Problem

During 20X2, Evans Company had the following transactions:

1. a. Cash dividends of $6,000 were paid.
2. b. Equipment was sold for $2,880. It had an original cost of $10,800 and a book value of $5,400. The loss is included in operating expenses.
3. c. Land with a fair market value of $15,000 was acquired by issuing common stock with a par value of $3,600.
4. d. One thousand shares of preferred stock (no par) were sold for $4.20 per share.

Evans provided the following income statement (for 20X2) and comparative balance sheets:

 Required:

Prepare a worksheet for Evans Company.