(Solved): The Murdock Corporation (MC) reported the following balance sheet data for 2022 and 2021: Additiona ...

The Murdock Corporation (MC) reported the following balance sheet data for 2022 and 2021: Additional information for 2022: (1.) Sold available-for-sale debt securities costing $\$69,500$ for $\$74,000$. (2.) Equipment costing $\$20,000$ with a book value of $\$5,000$ was sold for $\$6,000$. (3.) Issued $6\%$ bonds payable at face value, $\$200,000$. (4.) Purchased new equipment for $\$145,000$ cash. (5.) Paid cash dividends of $\$20,000$. (6.) Net income was $\$50,000$. 1) For the additional information provided above, show all the journal entries and classify each transaction in the correct category (operating, investing, financing). 2) Using a T-account, show how to estimate the depreciation expense for 2021. 3) Using a T-account, show how to reconcile the Retained Earnings account.