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The following transactions occurred during March 2016 for Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 44,000 common shares in exchange

The following transactions occurred during March 2016 for Wainwright Corporation. The company owns and operates a wholesale warehouse.


1.Issued 44,000 common shares in exchange for $440,000 in cash.
2.

He purchased equipment at a cost of $68,000. $17,000 cash was paid and a promissory note was signed for the balance due.

3.

Inventory purchased on account at a cost of $134,000. The company uses the perpetual inventory system.

4.Credit sales for the month totaled $190,000. The cost of goods sold was $114,000.
5.You paid $6,000 in rent on the warehouse building for the month of March.
6.

You paid $6,850 to an insurance company for fire and liability insurance for a period of one year beginning April 1, 2016.

7.He paid $114,000 on account for the merchandise purchased at 3.
8.Collected $85,500 from clients on account.
9.

Recorded depreciation expense of $1,700 per month on the equipment.


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

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