The following transactions occurred during March 2013 for the Wainwright Corporation.The company owns and operates a wholesale warehouse.
| 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 was signed for the balance owed.
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| 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, 2013.
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| 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: |
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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.)
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