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The following transactions occurred for the Wayne Corporation in March, its first month of operations. The company owns and operates a wholesale warehouse. Issued 3

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.

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