Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of ordinary

image text in transcribed
image text in transcribed
The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of ordinary shares in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000 $10,000 cash was paid and a note payable was signed for the balance owed 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013 7. Paid $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of $1,000 for the month on the equipment. Damlad. Required: Analyze each transaction and show the effect of each on the accounting equation for the corporation. The first transaction is recorded as an example. (Select "NA" if the category is not affected.) Assets Liabilities Issued Capital + Retained Earnings 1. +300,000 +300,000 2. - 10,000 +10,000 -10,000 NA +40,000 +30,000 (Click to select) (Click to select) 3. (Click to select) (Click to select) (Click to select) (Click to select) 4. (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) 5. (Click to select) (Click to select) (Click to select) (Click to select) 6. (Click to select) (Click to select) (Click to select) (Click to select) 7. (Click to select) (Click to select) (Click to select) (Click to select) 8. (Click to select) (Click to select) (Click to select) (Click to select) 9 (Click to select) (Click to select) (Click to select) (Click to select)

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

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

10th Edition

0131457349, 978-0131457348

More Books

Students also viewed these Accounting questions

Question

What are the different categories of financial instruments?

Answered: 1 week ago