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 49,000 shares of common

The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

1. Issued 49,000 shares of common stock in exchange for $490,000 in cash. 2.Purchased equipment at a cost of $59,000. $19,500 cash was paid and a note payable was signed for the balance owed.

3.Purchased inventory on account at a cost of $116,000. The company uses the perpetual inventory system.

4. Credit sales for the month totaled $215,000. The cost of the goods sold was $89,000. 5. Paid $6,900 in rent on the warehouse building for the month of March. 6.Paid $7,900 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013.

7. Paid $89,000 on account for the merchandise purchased in 3.

8. Collected $74,000 from customers on account. 9. Recorded depreciation expense of $2,900 for the month on the equipment.

*Post the above transactions to below T-accounts. Assume that the opening balances in each of the accounts is zero.

*

Prepare in good form a trial balance from the ending account balances.

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

The Principles And Practice Of Auditing

Authors: George Puttick, Sandra Van Esch

8th Edition

0702156914, 978-0702156915

More Books

Students also viewed these Accounting questions