Reference no: EM132636291
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
1. Issued 35,000 shares of common stock in exchange for $350,000 in cash.
2. Purchased equipment at a cost of $50,000. $15,000 cash was paid and a note payable to the seller was signed for the balance owed.
3. Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $125,000. The cost of the goods sold was $75,000.
5. Paid $5,500 in rent on the warehouse building for the month of March.
6. Paid $6,500 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
7. Paid $75,000 on account for the merchandise purchased in 3.
8. Collected $60,000 from customers on account.9.Recorded depreciation expense of $1,500 for the month on the equipment.
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