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 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 sold was $74,000.
- Paid $5,400 in rent on the warehouse building for the month of
March.
- Paid $6,400 to an insurance company for fire and liability
insurance for a one-year period beginning April 1, 2018.
- Paid $74,000 on account for the merchandise purchased in
3.
- Collected $59,000 from customers on account.
- Recorded depreciation expense of $1,400 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.