Revenues: Sales revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income PRE 130 45 OWNBA 40 12 70 $ d. A $30,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $60,000 face value. f. Common stock ($50,000 par) was sold for $76,000. g. Net income was $80,000 and cash dividends of $35,000 were paid to shareholders. 380 300 80 Additional information from the accounting records: a. Land that originally cost $10,000 was sold for $7,000. b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $150,000 cash. Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Prepare a cash flows from operating activities by the direct method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please do not give solution in image format thanku 

Assets
Cash
Accounts receivable
Short-term investment
Inventory
Land
Buildings and equipment
Less: Accumulated depreciation
Liabilities
Accounts payable
Salaries payable
Interest payable
Income tax payable
Notes payable
Bonds payable
Shareholders' Equity
Common stock
Paid-in capital-excess of par
Retained earnings
GA
$
SA
$
GA
2021
42 73 40
75
50
550
(115)
715
82590
160
250
126
135
715
$
GA
$
2020
30
75
15
70
60
400
(75)
575
553236
12
30
100
200
100
90
575
Transcribed Image Text:Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings GA $ SA $ GA 2021 42 73 40 75 50 550 (115) 715 82590 160 250 126 135 715 $ GA $ 2020 30 75 15 70 60 400 (75) 575 553236 12 30 100 200 100 90 575
Revenues:
Sales revenue
Expenses:
Cost of goods sold
Salaries expense
Depreciation expense
Interest expense
Loss on sale of land
Income tax expense
Net income
$
130
45
40
12
3
70
$
380
300
80
Additional information from the accounting records:
a. Land that originally cost $10,000 was sold for $7,000.
b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent.
c. New equipment was purchased for $150,000 cash.
d. A $30,000 note was paid at maturity on January 1.
e. On January 1, 2021, bonds were sold at their $60,000 face value.
f. Common stock ($50,000 par) was sold for $76,000.
g. Net income was $80,000 and cash dividends of $35,000 were paid to shareholders.
Prepare the statement of cash flows of
Wright Company for the year ended
December 31, 2021. Prepare a cash flows
from operating activities by the direct
method.
Transcribed Image Text:Revenues: Sales revenue Expenses: Cost of goods sold Salaries expense Depreciation expense Interest expense Loss on sale of land Income tax expense Net income $ 130 45 40 12 3 70 $ 380 300 80 Additional information from the accounting records: a. Land that originally cost $10,000 was sold for $7,000. b. The common stock of Microsoft Corporation was purchased for $25,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $150,000 cash. d. A $30,000 note was paid at maturity on January 1. e. On January 1, 2021, bonds were sold at their $60,000 face value. f. Common stock ($50,000 par) was sold for $76,000. g. Net income was $80,000 and cash dividends of $35,000 were paid to shareholders. Prepare the statement of cash flows of Wright Company for the year ended December 31, 2021. Prepare a cash flows from operating activities by the direct method.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Federal Insurance Contributions Act (FICA)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education