Exercise $2-2($Algo$)$ Journal entries $[$LO$2-3]$

The following transactions occurred during March $2024$ for the Right Corporation. The company operates a wholesale warehouse.

Issued $22,000$ shares of no$-$par common stock in exchange for $$220,000$ in cash.

Purchased equipment at a cost of $$24,000.$ Cash of $$6,000$ was paid and a note 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 $1,2024.$

Paid $$48,000$ on account for the inventory purchased in transaction $3.$

Collected $$36,000$ from customers on account.

Recorded depreciation expense of $$600$ for the month on the equipment.

Prepare journal entries to record each of the transactions listed above.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

Issued $22,000$ shares of no$-$par common stock in exchange for $$220,000$ in cash.