Exercise 2-1 (Algo) Transaction analysis (LO2-1] The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 58,000 shares of common stock in exchange for $580,000 in cash. 2. Purchased equipment at a cost of $96,000. $24,000 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 $176,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $260,000. The cost of the goods sold was $156,000. 5. Paid $7,750 in rent on the warehouse building for the month of March. 6. Paid $7,900 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $156,000 on account for the merchandise purchased in 3. 8. Collected $117,000 from customers on account. 9. Recorded depreciation expense of $2,400 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 580,000 Paid In Capital 580,000 2