Question

The following transactions occurred during March 2021 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 $54000 $17.000 cash was paid and a notes payable to the seller was signed for the balance 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 cost of the goods sok was $84.000 5. Paid $6.400 in rent on the warehouse building for the month of March 6. Paid $7,400 to an insurance company for fire and liability insurance for a one year period beginning April 1. 2021 7 Paid $84,000 on account for the merchandise purchased in 3 8. Collected $69.000 from customers on account 9. Recorded depreciation expense of $2.400 for the month on the equipment Post the above transactions to the below accounts. Assume that the opening balances in each of the accounts is yoro. Prepare a trial balance from the ending account balances

Answer 1

Cash Beg. Bal 440,000 69,000 8 2 5 6 7 17,000 6,400 7,400 84,000 394,200 509,000 End Bal 509,000 Inventory Beg. Bal 3 106,000 4 84,000 End bal 22,000 106,000 106,000 Accounts Receivable Beg. Bal 41 190,000 69,000 End bal 121,000 190,000 190,000 Prepaid Insurance Beg. Bal 7,400 End bal 7,400 7,400 7,400

Equipment Beg. Bal 54,000 End bal 54,000 54,000 54,000 Accumulated depreciation Beg. Bal 9 2,400 End bal 2,400 2,400 2,400 Accounts payable Beg. Bal 7 84,000 3 106,000 End bal 22,000 106,000 106,000 Notes payable Beg. Bal 37,000 End bal 37,000 37,000 37,000 Common stock Beg. Bal 440,000 End bal 440,000 440,000 440,000

Sales revenue Beg. Bal 4. 190,000 End bal 190,000 190,000 190,000 Cost of goods sold Beg. Bal 4 84,000 End ball 84,000 84,000 84,000 Rent expenses Beg. Bal 51 6,400) End bal 6,400 6,400 6,400 Depreciation expenses Beg. Bal 2,400 End bal 2,400 2,400 2,400

Credits Trial Balance Accounte Title Debits Cash 394,200 Accounts Receivable 121,000 Inventory 22,000 Prepaid insurance 7,400 Equipment 54,000 Accumulated depreciation Accounts payable Notes payable Common stock Sales revenue Cost of goods sold 84,000 Rent expenses 6,400 Depreciation expenses 2,400 Total 691,400 2,400 22,000 37,000 440,000 190,000 691,400