Wright Company was started in 2012 when it acquired $25,000 cash by issuing common stock to Cal

Question:

Wright Company was started in 2012 when it acquired $25,000 cash by issuing to Cal Wright.

Required
a. Was this event an asset source, use, or exchange transaction for Wright Company?
b. Was this event an asset source, use, or exchange transaction for Cal Wright?
c. Was the cash flow an operating, investing, or a financing activity on Wright Company’s 2012 statement of cash flows?
d. Was the cash flow an operating, investing, or a financing activity on Cal Wright’s 2012 statement of cash flows?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...