Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 30.000 shares of common

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 30.000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000 $10,000 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 $90,000. The company uses the perpetual inventory system 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000 5. Pald $5,000 in rent on the warehouse building for the month of March 6. Paid $6,000 to an insurance company for fire and liability Insurance for a one year perlod beginning April 1.2021 7. Pald $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of $1.000 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. Complete this question by entering your answers in the tabs below. Accounts Trial Balance Post the above transactions to the below accounts. Assume that the opening balances in each of the accounts 1520 (Enter the number of the transaction in the column next to the amount.) Cash Accounts receivable Beg Bal Beg Bal End Bal End Bal Inventory Prepaid Insurance Beg Bal Beg Bal End. Bal End Bal Equipment Accumulated depreciation Beg Bal Beg Bal End Bal End. Bal Accounts payable Notes payable Beg Bal Beg Bal Common stock Sales revenue Beg Bal Beg Bal End Bal End Bal Cost of goods sold Rent expense Beg Bal Beg Bal End Bal End Bal Depreciation expense Beg Bal End Bal T Accounts Trial Balance Prepare a trial balance from the ending account balances. Trial Balance Debits Account Title Credits Totals 0 0

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_2

Step: 3

blur-text-image_3

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

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions

Question

Many different people can conduct performance appraisals.

Answered: 1 week ago