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  3. the following transactions occurred during march 2018 for the wainwright...

Question: the following transactions occurred during march 2018 for the wainwright...

Question details

The following transactions occurred during March 2018 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.
  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, 2018.
  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.


Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

journal entries:

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 note payable 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.

Record entry for the cost of goods sold.

Paid $5,000 in rent on the warehouse building for the month of March.

Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.

Paid $70,000 on account for the merchandise purchased in 3.

Collected $55,000 from customers on account.

Recorded depreciation expense of $1,000 for the month on the equipment.

Pot the above trancactions to the below T-accounts. Assume that the apening balances in each of the accounts is zera. (Enter

T AccountsTrial Balance Prepare a trial balance from the ending account balances. Trial Balance Account Title Debits Credits

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