The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 37,000 shares of no-par common stock in exchange for $370,000 in cash. 2. Purchased equipment at a cost of $47,000. Cash of $13,500 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $92,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $155,000. The cost of the goods sold was $77,000. 5. Paid $5,700 in rent on the warehouse building for the month of March. 6. Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $77,000 on account for the inventory purchased in transaction 3. 8. Collected $62,000 from customers on account. 9. Recorded depreciation expense of $1,700 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances. Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Prepare a trial balance from the ending account balances. Trial Balance Account Title Cash Common stock Equipment Notes payable Inventory Sales revenue Cost of goods sold Rent expense Prepaid insurance Accounts payable Accounts receivable Depreciation expense Totals $ Debits 0 $ Credits 0
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. 1. Issued 37,000 shares of no-par common stock in exchange for $370,000 in cash. 2. Purchased equipment at a cost of $47,000. Cash of $13,500 was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $92,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $155,000. The cost of the goods sold was $77,000. 5. Paid $5,700 in rent on the warehouse building for the month of March. 6. Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. 7. Paid $77,000 on account for the inventory purchased in transaction 3. 8. Collected $62,000 from customers on account. 9. Recorded depreciation expense of $1,700 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances. Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Prepare a trial balance from the ending account balances. Trial Balance Account Title Cash Common stock Equipment Notes payable Inventory Sales revenue Cost of goods sold Rent expense Prepaid insurance Accounts payable Accounts receivable Depreciation expense Totals $ Debits 0 $ Credits 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse.
1. Issued 37,000 shares of no-par common stock in exchange for $370,000 in cash.
2. Purchased equipment at a cost of $47,000. Cash of $13,500 was paid and a note payable to the seller was signed for the balance
owed.
3. Purchased inventory on account at a cost of $92,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $155,000. The cost of the goods sold was $77,000.
5. Paid $5,700 in rent on the warehouse building for the month of March.
6. Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
7. Paid $77,000 on account for the inventory purchased in transaction 3.
8. Collected $62,000 from customers on account.
9. Recorded depreciation expense of $1,700 for the month on the equipment.
Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial
balance from the ending account balances.
Complete this question by entering your answers in the tabs below.
T Accounts Trial Balance
Prepare a trial balance from the ending account balances.
Trial Balance
Account Title
Cash
Common stock
Equipment
Notes payable
Inventory
Sales revenue
Cost of goods sold
Rent expense
Prepaid insurance
Accounts payable
Accounts receivable
Depreciation expense
Totals
$
Debits
0 $
Credits
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education