Question

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 45,000 shares of common stock in exchange for $450,000 in cash. 2. Purchased equipment at a cost of $55,000 $17,500 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 $108,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $195,000. The cost of the goods sold was $85,000. 5. Paid $6,500 in rent on the warehouse building for the month of March. 6. Paid $7,500 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $85,000 on account for the merchandise purchased in 3. 8. Collected $70,000 from customers on account 9. Recorded depreciation expense of $2,500 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.) Cash Accounts receivable Beg Bal Beg. Bal

Answer 1

Cash $ Beg. Bal. Beg. Bal. $0 1 $ N ת Account receivable $0 4 $195,000 $ 70,000 8 17,500 6,500 7,500 85,000 8 $ 6 450,000 $ 70,000 $ $ 403,500 7 End. Bal. $ End. Bal. $125,000 Inventory Beg. Bal. Beg. Bal. $0 3 $ Prepaid expense $0 6 $ 7,500 108,000 $ 85,000 4 End. Bal. $ 23,000 End. Bal. $ 7,500 Equipment Beg. Bal. $0 2 $ Accumulated depreciation Beg. Bal. 0 $ 2,500 55,000 End. Bal. $ 55,000 End. Bal. $ 2,500 Account payable Beg. Bal. 85,000 $ 108,000 Notes payable $ $0 Beg. Bal. 7 $ 3 $ 37,500 2 End. Bal. $ 23,000 End. Bal. $ 37,500

Sales revenue Common stock $0 Beg. Bal. $0 Beg. Bal. $0 $ 450,000 1 $195,000 4 End, Bal. $ 450,000 End. Bal. $195,000 Cost of goods sold Rent expense Beg. Bal. $0 4 $ 85,000 Beg. Bal $0 5 $ 6,500 End. Bal. $ 85,000 End. Bal. $ 6,500 Depreciation expense Beg. Bal. $0 9 $ 2,500 End. Bal. $ 2,500

Trial Balance Credits Debits $ 403,500 $ 450,000 $ 55,000 $ 37,500 $ 23,000 $ 23,000 Account Titles Cash Common stock Equipment Notes payable Inventory Account payable Account receivable Sales revenue Cost of goods sold Rent expense Prepaid expense Depreciation expense Accumulated depreciation Total $ 125,000 $ 195,000 $ $ $ 85,000 6,500 7,500 2,500 $ 708,000 $ $ 2,500 708,000 $ please comment if you have any doubt Please give thumps up if you satisfied with the answer