Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following transactions occurred during March 2024 for the Wainwright Corporation. The company owns and operates a wholesale: Warehouse 1. Issued 38,000 shares of common

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following transactions occurred during March 2024 for the Wainwright Corporation. The company owns and operates a wholesale: Warehouse 1. Issued 38,000 shares of common stock in exchange for $380,000 in 'cast. 2. Purchased equipment at a cost of $56,000,$18,000 cash was paid and a note payable to the seller was signed for the balance owed 3. Purchased inventory on account at a cost of $106,000. The company uses the perpetual inventory system. 4. Ciedit sales for the month totaled $128,000. The cost of the goods sold was $78,000. 5. Paid $5,800 in rent on the warehouse building for the month of March 6. Paid $6,800 to an insurance company for fire and lability insurance for a one-year period beginning Apeil 1, 2024 7 Paid $78,000 on account for the merchandise purchased in 3 . 8. Collected $63,000 from customers on account. 9. Recorded depreciation expense of $1,800 for the month on the equipment. Required: 1. Analyze each transaction by indicating the cash effect and classify edch as a financing. investing, andior operating activity la transaction can represent more than one type of activity) 2. Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $48,000. Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or operating activity (a) transaction can represent more than one type of activity). Note: Amounts to be deducted should be inclicated with a minus sign. If there is no cash nifect, loave cell blanks. WAINWRIGHT CORPORATION Statement of Cash Howis For the Mionth Ended March 31, 202 . Cash flows from operating activities: \begin{tabular}{|l|l|l|} \hline & & \\ \hline Net cash flows from operating activities & & \\ \hline Cash flows from investing activities: & & \\ \hline Net cash flows from investing activities & \\ \hline Cash flows from financing activities: & \\ \hline & \\ \hline Net cash flows from financing activities & \\ \hline Net increase in cash & \\ \hline Cash and cash equivalents, March 1 & \\ \hline Cash and cash equivalents, March 31 & \\ \hline Noncash investing and financing activities: \\ \hline Cost of equipment & \\ \hline Cash paid & \\ \hline Note issued & \\ \hline \end{tabular} Required 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting College Version

Authors: Steven M. Bragg

1st Edition

1938910702, 978-1938910708

More Books

Students also viewed these Accounting questions

Question

explain why both internal and external recovery are important;

Answered: 1 week ago