prepare general journal entries B u s i n e s s F i n a n c e

Follow instructions and fill out excel Files according to each question.

Workpaper A: 

O’Hura Company had the following information available at the end of 2021:

Income StatementFor the Year Ending on December 31, 2021Sales$640,000COGS Expense349,800Gross Profit$290,200Operating Expenses:Depreciation$85,800Salaries 110,800Insurance9,200Rent28,800Utilities13,300Total Operating Expenses247,900Operating Income$42,300Plus:  Other Revenues/Gains:Gain on Sale of Mark. Sec.11,800Less:  Other Expenses/Losses:Interest Expense8,000Loss on Sale of Plant Assets1,200Income Before Taxes$44,900Income Tax Expense7,200Net Income$37,700

The following additional information is also available:

1. Common stock with a par value of $20,000 was issued for $24,000 cash.
2. Plant assets costing $255,000 were purchased by paying $195,000 in cash and signing a $60,000 note payable for the balance.
3. Cash dividends of $15,400 were declared and paid.
4. Bonds payable with a face value of $30,000 were issued for $30,000 cash.
5. Marketable securities costing $31,700 were sold for $43,500 cash.
6. Plant assets costing $119,000 with accumulated depreciation of $73,000 were sold for $44,800 cash.
7. $35,000 of the long-term note payable was paid off in cash.
8. Instructions:In the General Journal and the 1st set of T-accounts for the indirect method:1.  Prepare general journal entries for the investing/financing/non-cash transactions in the general journal.2.  Post the transactions to the T-accounts.3.  Complete the operating section using the indirect method.In the 2nd set of T-accounts for the direct method:
   1. Using your completed general journal, post the journal entries to the T-accounts.
   2. Complete the operating section using the direct method.
   3. For question B: Just answer the following: (NO EXCEL FILE) 

Using your indirect solution–if the amount is negative (or a decrease), be sure to put a minus sign in front of the amount.

1. What is the cash flow from operating activities? 
2. What is the cash flow from investing activities? 
3. What is the cash flow from financing activities? 
4. What is the net increase or decrease in cash? 

Using your direct solution (be sure to indicate whether the amount is positive or negative):

1. What is the cash flow from operating activities? 
2. What is the cash flow from investing activities? 
3. What is the cash flow from financing activities? 
4. What is the net increase or decrease in cash?   

For question C just answer the following: (NO EXCEL FILE)

1. On the cash flow statement, if the indirect method is used, what additional disclosures (if any) are required?
2. On the cash flow statement, if the direct method is used, what additional disclosures (if any) are required?