How to Wrap the text in Source View of CKeditor
I found the solution to this:
This is a Firefox browser issue only (FF version >= 36). This behavior is not affected in other major browsers (Safari, IE and Chrome).
Here is the fix. Add the following code to you theme's CSS file:

.cke_source {
    white-space: pre-wrap !important;
}

Basically, you are overwriting the 'white-space' property of the "cke_source" selector in the "editor_gecko.css" file  of the CKEditor module. This file is located at: \sites\all\libraries\ckeditor\skins\moono\editor_gecko.css

References:

https://stackoverflow.com/questions/29038262/source-code-not-wrapping-in-ckeditor-on-firefox

https://www.drupal.org/node/1489340

http://dev.ckeditor.com/ticket/13031