The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a warehouse. es a wholesale 1. Issued 44,000 shares of common stock in exchange for $440,000 in cash 2. Purchased equipment at a cost of $68,000 $17,000 cash was paid and a notes payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $134,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $190,000. The cost of the goods sold was $114,000 5. Paid $6,000 in rent on the warehouse building for the month of March 4 6. Paid $6,850 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $114,000 on account for the merchandise purchased in 3. 8. Collected $85,500 from customers on account. 9. Recorded depreciation expense of $1,700 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 deducte be indicated by a minus sign. Enter the net change on the accounting equation.) I should
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a warehouse. es a wholesale 1. Issued 44,000 shares of common stock in exchange for $440,000 in cash 2. Purchased equipment at a cost of $68,000 $17,000 cash was paid and a notes payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $134,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $190,000. The cost of the goods sold was $114,000 5. Paid $6,000 in rent on the warehouse building for the month of March 4 6. Paid $6,850 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $114,000 on account for the merchandise purchased in 3. 8. Collected $85,500 from customers on account. 9. Recorded depreciation expense of $1,700 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 deducte be indicated by a minus sign. Enter the net change on the accounting equation.) I should
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![ces
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale
warehouse.
1. Issued 44,000 shares of common stock in exchange for $440,000 in cash.
2. Purchased equipment at a cost of $68,000 $17,000 cash was paid and a notes payable to the seller was signed for the balance
owed
3. Purchased inventory on account at a cost of $134,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $190,000. The cost of the goods sold was $114,000
4
5. Paid $6,000 in rent on the warehouse building for the month of March
6. Paid $6,850 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021
7 Paid $114,000 on account for the merchandise purchased in 3.
8. Collected $85,500 from customers on account.
9. Recorded depreciation expense of $1,700 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F32b7c306-399f-4c71-a4d3-19ba19f36d60%2Fnz14my2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ces
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale
warehouse.
1. Issued 44,000 shares of common stock in exchange for $440,000 in cash.
2. Purchased equipment at a cost of $68,000 $17,000 cash was paid and a notes payable to the seller was signed for the balance
owed
3. Purchased inventory on account at a cost of $134,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $190,000. The cost of the goods sold was $114,000
4
5. Paid $6,000 in rent on the warehouse building for the month of March
6. Paid $6,850 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021
7 Paid $114,000 on account for the merchandise purchased in 3.
8. Collected $85,500 from customers on account.
9. Recorded depreciation expense of $1,700 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.)
![1.
2.
3.
4.
5.
6.
7.
8.
9.
Assets
440,000
Liabilities
Paid-In Capital
440,000
Retained Earnings](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F32b7c306-399f-4c71-a4d3-19ba19f36d60%2Fide5n3l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1.
2.
3.
4.
5.
6.
7.
8.
9.
Assets
440,000
Liabilities
Paid-In Capital
440,000
Retained Earnings
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