Question

In: Accounting

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates...

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 31,000 shares of common stock in exchange for $310,000 in cash. Purchased equipment at a cost of $41,000. $10,500 cash was paid and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $80,000. The company uses the perpetual inventory system. Credit sales for the month totaled $125,000. The cost of the goods sold was $71,000. Paid $5,100 in rent on the warehouse building for the month of March. Paid $6,100 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. Paid $71,000 on account for the merchandise purchased in 3. Collected $56,000 from customers on account. Recorded depreciation expense of $1,100 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances.

Solutions

Expert Solution

Trial Balance
Particulars Dr Cr
Common Stock 310000
Cash A/c 273300
Equipment A/c 39900
Bills Payable A/c 30500
Purchases A/c 80000
Accounts Payable A/c 9000
Sales A/c 125000
Accounts Receivables A/c 69000
Prepaid Insurance A/c 6100
Depreciation exp 1100
Rent 5100
Total 474500 474500
In the books of Wainwright Corporation
T - Account
Dr. Common Stock A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Cash A/c 310000
31-Mar-18 balance c/d 310000
310000 310000
Dr. Cash A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Common stock (FV $10/-) 310000
Mar-18 Equipment 10500
Mar-18 Rent 5100
Mar-18 Prepaid Insurance 6100
Mar-18 Accounts Payables 71000
Mar-18 Accounts Receivable 56000
31-Mar-18 balance c/d 273300
366000 366000
Dr. Equipment A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Cash 10500
Mar-18 Bills Payable 30500
Mar-18 Depriciation 1100
31-Mar-18 balance c/d 39900
41000 41000
Dr. Bills Payable A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Equipment 30500
31-Mar-18 balance c/d 30500
30500 30500
Dr. Purchases A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Accounts payable 80000
31-Mar-18 balance c/d 80000
80000 80000
Dr. Accounts Payable A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Purchases 80000
Mar-18 Cash 71000
31-Mar-18 balance c/d 9000
80000 80000
Dr. Sales A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Accounts Receivable 125000
31-Mar-18 balance c/d 125000
125000 125000
Dr. Accounts Receivables A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Sales 125000
Mar-18 Cash 56000
31-Mar-18 balance c/d 69000
125000 125000
Dr. Rent A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Cash 5100
Mar-18 Profit & Loss A/c 5100
31-Mar-18 balance c/d 0
5100 5100
Dr. Prepaid Insurance A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Cash 6100
31-Mar-18 balance c/d 6100
6100 6100
Dr. Provision for Depreciation A/c Cr.
Date Particulars Amount (in $) Date Particulars Amount (in $)
Mar-18 Profit & Loss A/c 1100
Mar-18 Depreciation 1100
31-Mar-18 balance c/d 0
1100 1100

Related Solutions

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 34,000 shares of common stock in exchange for $340,000 in cash. Purchased equipment at a cost of $44,000. $12,000 cash was paid and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $86,000. The company uses the perpetual inventory system. Credit sales for the month totaled $140,000. The cost of the goods...
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 40,000 shares of common stock in exchange for $400,000 in cash. 2. Purchased equipment at a cost of $60,000. $15,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $122,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $170,000. The...
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 50,000 shares of capital stock in exchange for $500,000 in cash. 2.Purchased equipment at a cost of $80,000. $30,000 cash was paid and a note payable was signed for the balance owed. 3.Purchased inventory on account at a cost of $130,000. The company uses the perpetual inventory system. 4.Credit sales for the month totaled $140,000. The cost of the...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 50,000 shares of common stock in exchange for $500,000 in cash. Purchased equipment at a cost of $80,000. $20,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $152,000. The company uses the perpetual inventory system. Credit sales for the month totaled $220,000. The cost...
The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 44,000 shares of common stock in exchange for $440,000 in cash. 2. Purchased equipment at a cost of $54,000. $17,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $106,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $190,000. The...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 37,000 shares of common stock in exchange for $370,000 in cash. Purchased equipment at a cost of $47,000. $13,500 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $92,000. The company uses the perpetual inventory system. Credit sales for the month totaled $155,000. The cost...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 37,000 shares of common stock in exchange for $370,000 in cash. Purchased equipment at a cost of $47,000. $13,500 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $92,000. The company uses the perpetual inventory system. Credit sales for the month totaled $155,000. The cost...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2021 for the Wainwright Corporation. 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 notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. Credit sales for the month totaled $120,000. The cost...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 48,000 shares of non-par common stock in exchange for $480,000 in cash. Purchased equipment at a cost of $76,000. $19,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $146,000. The company uses the perpetual inventory system. Credit sales for the month totaled $210,000. The...
The following transactions occurred during March 2021 for the Wainwright Corporation.
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 2–1, when we determined their effect on elements of the accounting equation.]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 note payable to the seller was signed for the balance owed.3. Purchased inventory on account at a...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT