Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hey if someone can help please C The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale

hey if someone can help please
image text in transcribed
C The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 39,000 shares of common stock in exchange for $390,000 in cash 2. Purchased equipment at a cost of $58,000.919,000 cash was paid and a note payable to tho seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $108,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $129,000. The cost of the goods sold was $70,000. 5. Pald $5,900 in rent on the warehouse building for the month of March 6. Paid $6,900 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $79,000 on account for the merchandise purchased in 3. B. Collected $64,000 from customers on account. 9. Recorded depreciation expense of $1,900 for the month on the equipment. Required: 1. Analyze each transaction by indicating the cash effect and classify each as a financing. Investing, and/or operating activity (a transaction can represent more than one type of activity). 2. Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $49,000. Complete this question by entering your answers in the tabs below

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore Christensen, David Cottrell, Cassy Budd

13th Edition

1260772136, 9781260772135

More Books

Students also viewed these Accounting questions

Question

Demonstrate knowledge of the company/organization and the position.

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago

Question

What are the different techniques used in decision making?

Answered: 1 week ago