Question

Check my wor The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 30,000 shares of no-par 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 notes payable to the seller 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, 2021 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.)

Answer 1

Transaction	General journal	Debit	Credit
1	Cash	300,000
	Common stock		300,000
	( To record issuance of common stock)
2	Equipment	40,000
	Cash		10,000
	Note payable		30,000
	( To record purchase of equipment)
3	Inventory	90,000
	Accounts payable		90,000
	( To record purchase of inventory)
4 a	Accounts receivable	120,000
	Sales		120,000
	( To record sales on account)
4 b	Cost of goods sold	70,000
	Inventory		70,000
	( To record cost of goods sold)
5	Rent expense	5,000
	Cash		5,000
	( To record rent expense)
6	Prepaid insurance	6,000
	Cash		6,000
	( To record purchase of insurance )
7	Accounts payable	70,000
	Cash		70,000
	( To record payment to creditors)
8	Cash	55,000
	Accounts receivable		55,000
	( To record amount received from customers)
9	Depreciation expense	1,000
	Accumulated depreciation- equipment		1,000
	( To record depreciation expense)

Kindly comment if you need further assistance.

Thanks‼!