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Business, 17.09.2019 19:20 caseychandler030418
The following transactions occurred during march 2021 for the wainwright corporation. the company owns and operates a wholesale warehouse. issued 22,000 shares of common stock in exchange for $220,000 in cash. purchased equipment at a cost of $24,000. $6,000 cash was paid and a notes payable to the seller was signed for the balance owed. purchased inventory on account at a cost of $68,000. the company uses the perpetual inventory system. credit sales for the month totaled $80,000. the cost of the goods sold was $48,000. paid $3,250 in rent on the warehouse building for the month of march. paid $5,350 to an insurance company for fire and liability insurance for a one-year period beginning april 1, 2021. paid $48,000 on account for the merchandise purchased in 3. collected $36,000 from customers on account. recorded depreciation expense of $600 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.)
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