Reference no: EM132979479

The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

• Issued 30,000 shares of common stock in exchange for $300,000.
• Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
• Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
• Credit sales for the month totaled $120,000. The cost of goods sold was $70,000.
• Paid $5,000 in rent on the warehouse building for the month of March.
• Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013.
• Paid $70,000 on account for the merchandise purchased in 3.
• Collected $55,000 from customers on account.
• Recorded depreciation expense of $1,000 for the month on the equipment.

Problem 1: Produce an income statement