Check my work The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 28,000 shares of no-par common stock in exchange for $280,000 in cash. 2. Purchased equipment at a cost of $36,000. Cash of $9,000 was paid and a note payable to the seller was signe for the balance owed. 3. Purchased inventory on account at a cost of $86,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $110,000. The cost of the goods sold was $66,000. 5. Paid $4,000 in rent on the warehouse building for the month of March. 6. Paid $5,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $66,000 on account for the inventory purchased in transaction 3. 8. Collected $49,500 from customers on account. 9. Recorded depreciation expense of $900 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the expanded accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.
Check my work The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 28,000 shares of no-par common stock in exchange for $280,000 in cash. 2. Purchased equipment at a cost of $36,000. Cash of $9,000 was paid and a note payable to the seller was signe for the balance owed. 3. Purchased inventory on account at a cost of $86,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $110,000. The cost of the goods sold was $66,000. 5. Paid $4,000 in rent on the warehouse building for the month of March. 6. Paid $5,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $66,000 on account for the inventory purchased in transaction 3. 8. Collected $49,500 from customers on account. 9. Recorded depreciation expense of $900 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the expanded accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Check my work
The following transactions occurred during March 2024 for the Right Corporation. The company operates a
wholesale warehouse.
1. Issued 28,000 shares of no-par common stock in exchange for $280,000 in cash.
2. Purchased equipment at a cost of $36,000. Cash of $9,000 was paid and a note payable to the seller was signed
for the balance owed.
3. Purchased inventory on account at a cost of $86,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $110,000. The cost of the goods sold was $66,000.
5. Paid $4,000 in rent on the warehouse building for the month of March.
6. Paid $5,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1,
2024.
7. Paid $66,000 on account for the inventory purchased in transaction 3.
8. Collected $49,500 from customers on account.
9. Recorded depreciation expense of $900 for the month on the equipment.
Required:
Analyze each transaction and show the effect of each on the expanded accounting equation for a corporation.
Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting
equation.
1.
2.
3.
4.
5.
6.
7.
Assets
280,000
=
=
=
=
=
=
=
m
Liabilities
< Prev
+
+
+
+
+
+
+
+
Paid-In Capital
280,000
1 of 8
+
+
+
+
+
+
4
Retained Earnings
Next >
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