The following transactions occurred during March 2021 for the Wainwright Corporation The company owns and operates a wholesale warehouse Issued 45,000 shares of common stock in exchange for $450,000 in cash Purchased equipment at a cost of $55,000 $17,500 cash was paid and a notes payable to the seller was signed for the balance owed Purchased inventory on account at a cost of $108,000 The company uses the perpetual inventory system Credit sales for the month totaled $195,000 The cost of the goods sold was $85,000 Paid $6,500 in rent on the warehouse building for the month of March Paid $7,500 to an insurance company for fire and liability insurance for a one year period beginning April 1, 2021 Paid $85,000 on account for the merchandise purchased in 3 Collected $70,000 from customers on account Recorded depreciation expense of $2,500 for the month on the equipment Post the above transactions to the below T accounts Assume that the opening balances in each of the accounts is zero Prepare a trial balance from the ending account balances

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 21, 2024

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 45,000 shares of common stock

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

Issued 45,000 shares of common stock in exchange for $450,000 in cash.
Purchased equipment at a cost of $55,000. $17,500 cash was paid and a notes payable to the seller was signed for the balance owed.
Purchased inventory on account at a cost of $108,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $195,000. The cost of the goods sold was $85,000.
Paid $6,500 in rent on the warehouse building for the month of March.
Paid $7,500 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
Paid $85,000 on account for the merchandise purchased in 3.
Collected $70,000 from customers on account.
Recorded depreciation expense of $2,500 for the month on the equipment.

Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.