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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku

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

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.
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