The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 52,000 shares of common stock in exchange for $520,000 in cash. Purchased equipment at a cost of $84,000. $21,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $158,000. The company uses the perpetual inventory system. Credit sales for the month totaled $230,000. The cost of the goods sold was $138,000. Paid $7,000 in rent on the warehouse building for the month of March. Paid $7,450 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $138,000 on account for the merchandise purchased in 3. Collected $103,500 from customers on account. Recorded depreciation expense of $2,100 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.)

Transactions' Effects on the accounting equation of Wainwright Corporation are as follows:

Accounting equation:

                Assets                         =    Liabilities     + Stockholders' Equity

1.               $520,000                   =    $0                 +       $520,000

2.   $84,000+ $21,000                =    $63,000       +       $0

3.               $158,000                   =   $158,000       +       $0

4.              $230,000                   =    $0                 +       $230,000

5.             -$138,000                   =     $0                 +      -$138,000

6.                -$7,000                    =    $0                  +         -$7,000

7.                -$7,450                    =    $0                  +         -$7,450

8.            -$138,000                    =  -$138,000       +        $0

9.            $103,500 -$103,500  =    $0                  +       $0

10.              -$2,100                    =    $0                  +      -$2,100

Transaction Analysis:

1. Cash $520,000 Common Stock $520,000

2. Equipment $84,000 Cash $21,000 Notes payable $63,000

3. Inventory $158,000 Accounts payable $158,000

4. Accounts receivable $230,000 Sales revenue $230,000

5. Cost goods sold $138,000 Inventory $138,000

6. Rent Expense $7,000 Cash $7,000

7. Prepaid Insurance $7,450 Cash $7,450

8. Accounts payable $138,000 Cash $138,000

9. Cash $103,500 Accounts receivable $103,500

10. Depreciation expense $2,100 Accumulated Depreciation $2,100

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