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The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse owed. 1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a notes payable to the seller was signed for the balance 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March 6. Pald $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Pald $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of $1,000 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.) Liabilities + Retained Earnings Assets 300.000 Paid in Capital 300,000 1 2 30,000 90,000 3 90,000 4 5 (5.000) (5.000) 6 7 (70,000) 8 (70,000) (55.000) (1.000) 9 (1.000) The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021 Credit Debit 3,240 3,240 Interest expense Interest payable Rent expense Prepaid rent Interest receivable Interest revenue 8,250 8,250 300 300 Additional Information 1. The company borrowed $108,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company's only interest-bearing debt. 2. Rent for the year on the company's office space is $33,000. The rent is paid in advance. 3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 3.0% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2021 rent payment was made at the beginning of which month? (Do not round your Intermediate calculation.) 3. How much did Eldorado lend its customer on October 312 1 Interest rate 2 Month of rent payment 3 Principal The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021 Debit 15,840 Credit 15,840 Interest expense Interest payable Rent expense Prepaid rent Interest receivable Interest revenue 30,000 30,000 700 700 Additional information 1. The company borrowed $264.000 on March 31, 2021 Principal and interest are due on March 31, 2022. This note is the company's 2. Rent for the year on the company's office space is $36,000. The rent is paid in advance, 3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6.0% clue in one year 1 Required: 1. What is the interest rate on the company's note payable? 2. The 2021 rent payment was made at the beginning of which month? (Do not round your intermediate calculation) 3. How much did Eldorado lend its customer on October 31 1. Interest rate 2 Month of rent payment 3. Principal

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