Exerclse $2-1($Algo$)$ Transactlon analysis $[$LO$2-1]$

$0\mathrm{.}55$ points

eBook

Reterences

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

Issued $42,000$ shares of no$-$par common stock in exchange for $$420,000$ in cash.

Purchased equipment at a cost of $$64,000.$ Cash of $$16,000$ was paid and a note payable to the seller was signed for the balance owed.

Purchased inventory on account at a cost of $$128,000.$ The company uses the perpetual inventory system.

Credit sales for the month totaled $$180,000.$ The cost of the goods sold was $$108,000.$

Paid $$5,750$ in rent on the warehouse building for the month of March.

Paid $$6,700$ to an insurance company for fire and liability insurance for a one$-$year period beginning April $1,2024$

Paid $$108,000$ on account for the inventory purchased in transaction $3.$

$8.$ Collected $$81,000$ from customers on account.

Recorded depreciation expense of $$1,600$ for the month on the equipment.

Required:

Analyze each transaction and show the effect of each on the expanded accounting equation for a corporation.

Note: Amounts to be deducted should be Indleated by a minus sign. Enter the net change on the accounting equation.

$\backslash$table$[[,$Assets,$=,$Liabilities,$+,$Paic$-$In Capital,$+,$Retained Earnings$],[1.,420,000,=,,+,42420,000,+,$HIM$+107$tat$],[2.,,=,,,,,],[3.,,=,,+,,+,],[4.,,=,,,,+,],[5.,,=,,+,,+,],[6.,,=,,+,,+,],[7.,,=,,+,,+,],[8.,,,,,,,],[9,,,,,,,],[9.,,=,,+,,+,]]$