Purchased equipment at a cost of $$40,000.$ Cash of $$10,000$ was paid and a note payable to the seller was signed for the balance owed.

Purchased inventory on account at a cost of $$90,000.$ The company uses the perpetual inventory system.

Credit sales for the month totaled $$120,000.$ The cost of the goods sold was $$70,000.$

Paid $$5,000$ in rent on the warehouse building for the month of March.

Paid $$6,000$ to an insurance company for fire and liability insurance for a one$-$year period beginning April $1,2024.$

Paid $$70,000$ on account for the inventory purchased in transaction $3.$

Collected $$55,000$ from customers on account.

Recorded depreciation expense of $$1,000$ 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 indicated by a minus sign. Enter the net change on the accounting equation.

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