4419 Transactions/Adjusting Entries - due 02/03 Crane Department Store had the following information available at December 31, 2019. A) A 10%, $3,000 note payable was issued March 1, 2019. Under the terms of the note, the amount of the note plus interest is to be paid on February 29, 2020 B) Crane rents space to the Eric Co. for Gourmet Foods. On December 1, 2019, Eric Co. had prepaid rent for December 2019. January 2020, and February 2020. The entire amount was recorded unearned income (by Crane) when it was received. The total rent for three months was $300 On November 1, 2019, Crane purchased a two-year insurance policy for $4.800. The price amount had been recorded as insurance expense. D) Supplies costing $4,000 were purchased on January 1, 2019. The supplies were recorded as assets, supplies, when purchased. A year-end count of the supplies revealed that only $200 of supplies were still unused and remained in stock. E) Eileen's Heavenly Coffee rents part of the store (from Crane) for $800 per month. Eileen has not paid rent for the month of December 2019 and rent revenue has not yet been recorded Check my work 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. Paid $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 period beginning April 1, 2021. 7. Paid $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. 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.) = Liabilities + + Retained Assets 300,000 Paid-In Capital 300,000 1. 2. 90000 LLLLLLLLLLL