The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 41,000 shares of no-par common stock in exchange for $410,000 in cash. Purchased equipment at a cost of $51,000. Cash of $15,500 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system. Credit sales for the month totaled $175,000. The cost of the goods sold was $81,000. Paid $6,100 in rent on the warehouse building for the month of March. Paid $7,100 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $81,000 on account for the inventory purchased in transaction 3. Collected $66,000 from customers on account. Recorded depreciation expense of $2,100 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. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Note: Enter the number of the transaction in the column next to the amount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse.

Issued 41,000 shares of no-par common stock in exchange for $410,000 in cash.
Purchased equipment at a cost of $51,000. Cash of $15,500 was paid and a note payable to the seller was signed for the balance owed.
Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $175,000. The cost of the goods sold was $81,000.
Paid $6,100 in rent on the warehouse building for the month of March.
Paid $7,100 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
Paid $81,000 on account for the inventory purchased in transaction 3.
Collected $66,000 from customers on account.
Recorded depreciation expense of $2,100 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.

Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero.

Note: Enter the number of the transaction in the column next to the amount.

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