Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following transactions occurred during march 2

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and...

80.2K

Verified Solution

Question

Accounting

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

  1. Issued 45,000 shares of common stock in exchange for $450,000 in cash.
  2. Purchased equipment at a cost of $55,000. $17,500 cash was paid and a notes payable to the seller was signed for the balance owed.
  3. Purchased inventory on account at a cost of $108,000. The company uses the perpetual inventory system.
  4. Credit sales for the month totaled $195,000. The cost of the goods sold was $85,000.
  5. Paid $6,500 in rent on the warehouse building for the month of March.
  6. Paid $7,500 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
  7. Paid $85,000 on account for the merchandise purchased in 3.
  8. Collected $70,000 from customers on account.
  9. Recorded depreciation expense of $2,500 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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students