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Exercise 2-2 (Algo) Journal entries [LO2-3] The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
Exercise 2-2 (Algo) Journal entries [LO2-3]
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
- Issued 60,000 shares of non-par common stock in exchange for $600,000 in cash.
- Purchased equipment at a cost of $100,000. $25,000 cash was paid and a notes payable to the seller was signed for the balance owed.
- Purchased inventory on account at a cost of $182,000. The company uses the perpetual inventory system.
- Credit sales for the month totaled $270,000. The cost of the goods sold was $162,000.
- Paid $8,000 in rent on the warehouse building for the month of March.
- Paid $8,050 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
- Paid $162,000 on account for the merchandise purchased in 3.
- Collected $121,500 from customers on account.
- Recorded depreciation expense of $2,500 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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