The following transactions occurred during march 2013 for, Ask an Expert

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

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

Category:- Accounting Basics
Reference No.:- M9963770

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