The following transactions occurred for the Wayne Corporation in March, its first month of operations. The company owns and operates a wholesale warehouse.

Issued $30,000$ shares of common stock in exchange for $$300,000$ in cash.

Purchased equipment at a cost of $$40,000.$ $$10,000$ cash was paid and a note payable to the seller was signed for the balance owed.

Purchased inventory on account at a cost of $$90,000.$

Credit sales for the month totaled $$120,000.$ The cost of the goods sold was $$70,000.$

Paid $$5,000$ in rent on the warehouse building for the month of March.

Paid $$6,000$ to an insurance company for fire and liability insurance for a one$-$year period beginning in April.

Paid $$70,000$ on account for the merchandise purchased in transaction $3.$

Collected $$55,000$ from customers on account.

Paid utilities expense of $$1,000$ for the month.

Required:

Analyze each transaction and show the effect of each on the accounting equation for Wayne Corporation. The first item is provided as an example.

Prepare a preliminary balance sheet and preliminary income statement for Wayne Corporation for March.