The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 22,000 shares of no-par common stock in exchange for $220,000 in cash. 2. Purchased equipment at a cost of $24,000. Cash of $6,000 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $68,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $80,000. The cost of the goods sold was $48,000. 5. Paid $3,250 in rent on the warehouse building for the month of March. 6. Paid $5,350 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $48,000 on account for the inventory purchased in transaction 3. 8. Collected $36,000 from customers on account. 9. Recorded depreciation expense of $600 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 co 9 10 Issued 22,000 shares of no-par common stock in exchange for $220,000 in cash.
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 22,000 shares of no-par common stock in exchange for $220,000 in cash. 2. Purchased equipment at a cost of $24,000. Cash of $6,000 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $68,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $80,000. The cost of the goods sold was $48,000. 5. Paid $3,250 in rent on the warehouse building for the month of March. 6. Paid $5,350 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $48,000 on account for the inventory purchased in transaction 3. 8. Collected $36,000 from customers on account. 9. Recorded depreciation expense of $600 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 co 9 10 Issued 22,000 shares of no-par common stock in exchange for $220,000 in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale
warehouse.
1. Issued 22,000 shares of no-par common stock in exchange for $220,000 in cash.
2. Purchased equipment at a cost of $24,000. Cash of $6,000 was paid and a note payable to the seller was signed for the
balance owed.
3. Purchased inventory on account at a cost of $68,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $80,000. The cost of the goods sold was $48,000.
5. Paid $3,250 in rent on the warehouse building for the month of March.
6. Paid $5,350 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
7. Paid $48,000 on account for the inventory purchased in transaction 3.
8. Collected $36,000 from customers on account.
9. Recorded depreciation expense of $600 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
1
2
3
4
5
6
7
8
co
9
10
Issued 22,000 shares of no-par common stock in exchange for $220,000 in
cash.
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