Question

The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 48,000 shares of common stock in exchange for $480,000 in cash. 2. Purchased equipment at a cost of $58,000. $19,000 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 $114,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $210,000. The cost of the goods sold was $88,000. 5. Pald $6,800 in rent on the warehouse building for the month of March 6. Pald 57,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021 7. Pald $88,000 on account for the merchandise purchased in 3. 8. Collected $73,000 from customers on account. 9. Recorded depreciation expense of $2,800 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. rences 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 Bog. Bol Beg Bal

Answer 1

Here I'm gonna prepare T accounts and Trial balance only for the month of March 2021.

Cash Account
Description	Debit	Description	Credit
Opening balance	$0	Equipment	$19000
Common stock	$480000	Rent	$6800
Accounts receivable	$73000	Prepaid insurance	$7800
		Accounts payable	$88000
		Closing balance	$431400
	$553000		$553000

Common Stock Account
Description	Debit	Description	Credit
		Opening balance	$0
Closing balance	$480000	Cash	$480000
	$480000		$480000

Equipment
Description	Debit	Description	Credit
Opening balance	$0
Cash	$19000
Notes payable	$39000	Closing balance	$58000
	$58000		$58000

Notes Payable
Description	Debit	Description	Credit
		Opening balance	$0
Closing balance	$39000	Equipment	$39000
	$39000		$39000

Purchase Account
Description	Debit	Description	Credit
Opening balance	$0
Accounts payable	$114000	Closing balance	$114000
	$114000		$114000

Sales Account
Description	Debit	Description	Credit
		Opening balance	$0
Closing balance	$210000	Accounts receivable	$210000
	$210000		$210000

Rent Paid
Description	Debit	Description	Credit
Opening balance	$0
Cash	$6800	Closing balance	$6800
	$6800		$6800

Prepaid Insurance
Description	Debit	Description	Credit
Opening balance	$0
Cash	$7800	Closing balance	$7800
	$7800		$7800

Accounts Payable
Description	Debit	Description	Credit
Cash	$88000	Opening balance	$0
Closing balance	$26000	Purchase	$114000
	$114000		$114000

Accounts Receivable
Description	Debit	Description	Credit
Opening balance	$0	Cash	$73000
Sales	$210000	Closing balance	$137000
	$210000		$210000

Accumulated Depreciation
Description	Debit	Description	Credit
		Opening balance	$0
Closing balance	$2800	Depreciation	$2800
	$2800		$2800

Depreciation
Description	Debit	Description	Credit
Opening balance	$0
Accumulated depreciation	$2800	Closing balance	$2800
	$2800		$2800

WAINWRIGHT CORPORATION
Trial Balance
For the month of March 2021
Account Titles	Debit	Credit
Cash	$431400
Accounts Receivable	$137000
Prepaid Insurance	$7800
Equipment	$58000
Common Stock		$480000
Notes Payable		$39000
Accounts Payable		$26000
Accumulated Depreciation		$2800
Sales		$210000
Purchase	$114000
Rent	$6800
Depreciation	$2800
Total	$757800	$757800

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