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.)
Paid-In Capital Retained Earnings Assets Liabilities + 220,000 1 220,000 2. 3 4. 5 6 7. 8 9 LC

Assets = Liabilities + Stockholders’ Equity = $286,150

Explanation:

Note: See the attached excel file for the Analysis of the Effect of March 2021 on the Accounting Equation.

From the attached excel file, the following can be obtained:

Assets = Total assets = $193,400 + $23,400 + $20,000 + $44,000 + $5,350 = $286,150

Liabilities = Total liabilities = $18,000 + $20,000 = $38,000

Stockholders’ Equity = Total Stockholders’ Equity = $220,000 + $28,150 = $248,150

Liabilities + Stockholders’ Equity = $38,000 + $248,150 = $286,150

Therefore, the accounting equation holds as follows:

Assets = Liabilities + Stockholders’ Equity = $286,150

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.