The following transactions occurred during March 2018 for the Wainwright Corporation The company owns and operates a wholesale warehouse Issued 32,000 shares of common stock in exchange for $320,000 in cash Purchased equipment at a cost of $44,000 $11,000 cash was paid and a note payable was signed for the balance owed Purchased inventory on account at a cost of $98,000 The company uses the perpetual inventory system Credit sales for the month totaled $130,000 The cost of the goods sold was $78,000 Paid $4,250 in rent on the warehouse building for the month of March Paid $5,950 to an insurance company for fire and liability insurance for a one year period beginning April 1, 2018 Paid $78,000 on account for the merchandise purchased in 3 Collected $58,500 from customers on account Recorded depreciation expense of $1,100 for the month on the equipment Required Analyze each transaction and show the effect of each on the accounting equation for a corporation (Amounts to be deducted should be indicated by a minus sign Enter the net change on the accounting equation )

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Posted on Sep 11, 2024

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 32,000 shares of common stock

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

Issued 32,000 shares of common stock in exchange for $320,000 in cash.
Purchased equipment at a cost of $44,000. $11,000 cash was paid and a note payable was signed for the balance owed.
Purchased inventory on account at a cost of $98,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $130,000. The cost of the goods sold was $78,000.
Paid $4,250 in rent on the warehouse building for the month of March.
Paid $5,950 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.
Paid $78,000 on account for the merchandise purchased in 3.
Collected $58,500 from customers on account.
Recorded depreciation expense of $1,100 for the month on the equipment.

Required: Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.)