Reference no: EM132367097

Question

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

Issued 60,000 shares of common stock in exchange for $600,000 in cash.

Purchased equipment at a cost of $100,000. $25,000 cash was paid and a notes payable to the seller was signed for the balance owed.

Purchased inventory on account at a cost of $182,000. The company uses the perpetual inventory system.

Credit sales for the month totaled $270,000. The cost of the goods sold was $162,000.

Paid $8,000 in rent on the warehouse building for the month of March.

Paid $8,050 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.

Paid $162,000 on account for the merchandise purchased in 3.

Collected $121,500 from customers on account.

Recorded depreciation expense of $2,500 for the month on the equipment.

Required:

Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.)