The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 56,000 shares of non-par common stock in exchange for $560,000 in cash 2. Purchased equipment at a cost of $92,000. $23,000 cash was paid and a notes payable to the seller was signed for the balance owed. 3. Purchased inventory on account at a cost of $170,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $250,000. The cost of the goods sold was $150,000 5. Paid $7,500 in rent on the warehouse building for the month of March 6. Paid $7750 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021 7. Paid $150,000 on account for the merchandise purchased in 3. 8. Collected $112,500 from customers on account. 9. Recorded depreciation expense of $2,300 for the month on the equipment Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The following transactions occurred for the Falwell Company amount 1. A three-year fire insurance policy was purchased on July 1, 2021, for $9,720. The company debited insurance expense for the entire 2. Depreciation on equipment totaled $10,500 for the year. 3. Employee salaries of $13,000 for the month of December will be paid in early January 2022. 4. On November 1, 2021, the company borrowed $120,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022 5. On December 1, 2021, the company received $3,900 in cash from another company that is renting office space in Falwell's building The payment, representing rent for December, January, and February was credited to deferred rent revenue. 6. On December 1, 2021, the company received $3,900 in cash from another company that is renting office space in Falwell's building. The payment representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $3,900 on December 1, 2021. Prepare the necessary adjusting entries at December 31, 2021 for each of the above situations. Assume that no financial statements were prepared during the year and no adjusting entries were recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) American Chip Corporation's reporting year-end is December 31. The following is a partial adjusted trial balance as of December 31, 2021 Debits Credits 89,000 840,000 7,500 Account Title Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Insurance expense 465,000 190,000 24,000 39,800 5,900 6,989 Required: Prepare the necessary closing entries at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
