Question

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 41,000 shares of common stock in exchange for $410,000 in cash 2. Purchased equipment at a cost of $51,000. $15,500 cash was paid and a notes payable to the seller was signed for the balance owed. 3. Purchased Inventory on account at a cost of $100,000. The company uses the perpetual Inventory system. 4. Credit sales for the month totaled $175,000. The cost of the goods sold was $81,000. 5. Pald $6,100 in rent on the warehouse building for the month of March, 6. Pald $7100 to an insurance company for fire and liability Insurance for a one-year period beginning April 1, 2021. 7. Pald $81.000 on account for the merchandise purchased in 3 8. Collected $66.000 from customers on account 9. Recorded depreciation expense of $2,100 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. Complete this question by entering your answers in the tabs below. T Accounts Trial Balance Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts is zero. (Enter the number of the transaction in the column next to the amount.) Accounts receivable < Prey 2 of 5 Next >

Answer 1

T-accounts:

Beg. Bal. Beg. Bal. Cash $0 $410,000 $ 66,000 Accounts receivable $0 $ 175,000 $ 66,000 (8) $ 15,500 (2) $6,100 (5) $ 7,100 (6) $ 81,000 (7) End. Bal. $ 366,300 End. Bal. $ 109,000 Beg. Bal. Equipment $0 $ 51,000 Beg. Bal. (3) Inventory So $100,000 $81,000 (4) End. Bal. $ 51,000 End. Bal. $ 19,000 Prepaid insurance SOM $0 Beg. Bal. (6) End. Bal. Accumulated depreciation Beg. Bal. $ 2,100 (9) End. Bal. $2,100 $ 7,100 $ 7,100 Beg. Bal. Notes payable $0 $ 35,500 (2) Beg. Bal. Accounts payable $0 $ 81,000 $100,000 (3) (7) End. Bal. $ 35,500 End. Bal. $ 19,000

Beg. Bal. Common stock $0 $ 410,000 (1) Beg. Bal. Sales revenue $0 $ 175,000 (1) End. Bal. $ 410,000 End. Bal. $ 175,000 Beg. Bal. (4) Cost of goods sold $0 $ 81,000 Beg. Bal. (5) Rent expense $0 $6,100 End. Bal. $ 81,000 End. Bal. $ 6,100 Depreciation expense Beg. Bal. $ 2,100 $2,100 End. Bal.

Trial balance:

Credit Trial balance Account titles Debit Cash 366,300 Inventory 109,000 Equipment 51,000 Inventory 19,000 Prepaid insurance 7,100 Accumulated depreciation Notes payable Accounts payable common stock Sales revenue Cost of goods sold 81,000 Rent expense 6,100 Depreciation expense 2,100 Totals 641,600 2,100 35,500 19,000 410,000 175,000 641,600