Part A) The following information is related to Somerset Company’s fiscal year 2018.

            Income Statement:
                        Net Income                             $4,000,000
                        Depreciation Expense        650,000
                        Gain on Sale of Plant Assets      50,000
                        Interest Expense                            5,000
            Balance Sheet – 12/31/17: Increase (Decrease)
                        Accounts Receivable        ($45,000)
                        Plant Assets – Purchased       250,000
                        Plant Assets – Disposals         (100,000)
                       
            Additional Information:
                        Common Stock exchanged for outstanding Long Term Notes Payable of $150,000
                        Dividends paid were $35,000
Use this information to make an example of a partial Statement of Cash Flows for Somerset Company. Prepare only the section related to Cash Flows from Operating Activities.
Part B)
On January 1, 2018, Baltimore Company issued $100,000 face value, 5%, 5-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2018 fiscal year. Round your answer to the nearest whole dollar.
Part C)
On August 1, 2018, Dorchester Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at $100,000.  The annual interest rate implicit in the lease was 9%, and the first lease payment of $1,600 is due at the end of each month of the lease.  Use this information to prepare the General Journal entry (without explanation) for the August 31, 2018 monthly lease payment. If no entry is required then write “No Entry Required.” (Round your answer to the nearest whole dollar.)