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The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 42,000 shares of common
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 42,000 shares of common stock in exchange for $420,000 in cash. 2. Purchased equipment at a cost of $64,000. $16,000 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 $128,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $180,000. The cost of the goods sold was $108,000. 5. Paid $5,750 in rent on the warehouse building for the month of March. 6. Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1,2021. 7. Paid $108,000 on account for the merchandise purchased in 3. 8. Collected $81,000 from customers on account. 9. Recorded depreciation expense of $1,600 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.) \begin{tabular}{|l|l|l|l|l|l|l|l|l|} \hline & \multicolumn{1}{|c|}{ Assets } & = & Liabilities & + & Paid-In Capital & + & Retained Earnings \\ \hline 1. & 420,000 & & & & 420,000 & & \\ \hline 2. & & & & & & & \\ \hline 3. & & & & & & & \\ \hline 4. & & & & & & & \\ \hline 5. & & & & & & & \\ \hline 6. & & & & & & & \\ \hline 7. & & & & & & & \\ \hline 8. & & & & & & & \\ \hline 9. & & & & & & \\ \hline \end{tabular}
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