Question

Chapter 2 homework Help 3 The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 6.25 points ook 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 notes payable to the seller was signed for the balance 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, 2021 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 int Post the above transactions to the below Taccounts. 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 B

Answer 1

1. Cash

Beg. Bal	$340,000
		$12,000	2
		$5,400	3
		$6,400	6
8	$59,000	$74,000	7
Ending.Bal	$301,200

Accounts Receivable

Beg.Bal	$0
4)	$140,000	$59,000	8
End. Bal	$81,000

Inventory

Beg.Bal	$0
3	$86,000	$74,000	4
End. Bal	$12,000

Prepaid Insurance

Beg.Bal	$0
6)	$6,400
End.Bal	$6,400

Equipment

Beg.Bal	$0
2)	$44,000
End.Bal	$44,000

Accumulated Depreciation -Equipment

Beg.Bal		$0
		$1,400	9)
End.Bal		$1,400

Accounts Payable

Beg.Bal		$0
7)	$74,000	$86,000	3)
End.Bal		$12,000

Notes Payable

Beg.Bal		$0
		$32,000	2)
End.Bal		$32,000

Common Stock

Beg.Bal		$0
		$340,000	1)
End.Bal		$340,000

Sales Revenue

Beg.Bal		$0
		$140,000	4)
End.Bal		$140,000

Cost of Goods Sold

Beg.Bal	$0
4)	$74,000
End.Bal	$74,000

Rent Expenses

Beg.Bal	$0
5)	$5,400
End.Bal	$5,400

Depreciation Expanse

Beg.Bal	$0
9)	$1,400
End.Bal	$1,400