The following transactions occurred during march 2013 for


The following transactions occurred during March 2013 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, 2013.
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 below T-accounts. Assume that the opening balances in each of the accounts is zero.

 

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Accounting Basics: The following transactions occurred during march 2013 for
Reference No:- TGS0776825

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