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.

  1. Issued 34,000 shares of common stock in exchange for $340,000 in cash.
  2. Purchased equipment at a cost of $44,000. $12,000 cash was paid and a note payable was signed for the balance owed.
  3. Purchased inventory on account at a cost of $86,000. The company uses the perpetual inventory system.
  4. Credit sales for the month totaled $140,000. The cost of the goods sold was $74,000.
  5. Paid $5,400 in rent on the warehouse building for the month of March.
  6. Paid $6,400 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.
  7. Paid $74,000 on account for the merchandise purchased in 3.
  8. Collected $59,000 from customers on account.
  9. 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.

Solutions

Expert Solution

Cash
Beg Bal                     -  
1    340,000.00    12,000.00 2
8      59,000.00      5,400.00 5
     6,400.00 6
   74,000.00 7
End Bal    301,200.00
Accounts Receivable
Beg Bal                     -  
4    140,000.00    59,000.00 8
End Bal      81,000.00   
Equipment
Beg Bal                     -  
2      44,000.00
End Bal      44,000.00   
Inventory
Beg Bal                     -  
3      86,000.00    74,000.00 4
End Bal      12,000.00
Prepaid Insurance
Beg Bal                     -  
6        6,400.00
End Bal        6,400.00      
Common Stock
Beg Bal                     -  
      340,000.00 1
End Bal    340,000.00
Accounts payable
Beg Bal                     -  
7    74,000.00      86,000.00 3
End Bal      12,000.00
Notes Payable
Beg Bal                     -  
        32,000.00 2
End Bal      32,000.00
Accumulated Depreciation
Beg Bal                     -  
       1,400.00 9
  
End Bal        1,400.00   
Sales Revenue
Beg Bal                     -  
   140,000.00 4
End Bal    140,000.00   
Rent Expense
Beg Bal                   -  
5      5,400.00
End Bal      5,400.00   
Cost of Goods Sold
Beg Bal                   -  
4    74,000.00
End Bal    74,000.00   
Depreciation Expense
Beg Bal                   -  
9      1,400.00
End Bal      1,400.00
Cash    301,200.00
Accounts Receivable      81,000.00
Equipment      44,000.00
Inventory      12,000.00
Prepaid Insurance        6,400.00
Common Stock    340,000.00
Accounts payable      12,000.00
Notes Payable      32,000.00
Accumulated Depreciation         1,400.00
Sales Revenue    140,000.00
Rent Expense        5,400.00
Cost of Goods Sold      74,000.00
Depreciation Expense        1,400.00
Total    525,400.00    525,400.00

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. 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. 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...
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