Brief Exercise 12-5 Direct Method

Fill in the blank for each of the following situations.

Balance Sheet Beginning Ending Income statement (Outflow)Cash flow

1. Accounts receivable $2,000 $5,000 Sales on account, $15,000 $________

2. Prepaid insurance $4,000 $3,000 Insurance expense, $7,000 $________

3. Income taxes payable $6,000 $9,000 Income tax expense, $20,000 $________

4. Wages payable $5,000 $3,000 Wages expense, $25,000 $________