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

Issued 22,000 shares of common stock in exchange for $220,000 in cash.

Purchased equipment at a cost of $24,000. $6,000 cash was paid and a note payable to the seller was signed for the balance owed.

Purchased inventory on account at a cost of $68,000.

Credit sales for the month totaled $80,000. The cost of the goods sold was $48,000.

Paid $3,250 in rent on the warehouse building for the month of March.

Paid $5,350 to an insurance company for fire and liability insurance for a one-year period beginning April.

Paid $48,000 on account for the inventory purchased in transaction 3.

Collected $36,000 from customers on account.

Paid utilities expense of $600 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.

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