Reference no: EM133104904
Question - The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
-Issued 42,000 shares of common stock in exchange for $420,000 in cash.
-Purchased equipment at a cost of $64,000. $16,000 cash was paid and a notes payable to the seller was signed for the balance owed.
-Purchased inventory on account at a cost of $128,000. The company uses the perpetual inventory system.
-Credit sales for the month totaled $180,000. The cost of the goods sold was $108,000.
-Paid $5,750 in rent on the warehouse building for the month of March.
-Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
-Paid $108,000 on account for the merchandise purchased in 3.
-Collected $81,000 from customers on account.
-Recorded depreciation expense of $1,600 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.)
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