The following transactions occurred during March 2016 for Wainwright Corporation. The company owns and operates a wholesale warehouse.

1.	Issued 44,000 common shares in exchange for $440,000 in cash.
2.	He purchased equipment at a cost of $68,000. $17,000 cash was paid and a promissory note was signed for the balance due.
3.	Inventory purchased on account at a cost of $134,000. The company uses the perpetual inventory system.
4.	Credit sales for the month totaled $190,000. The cost of goods sold was $114,000.
5.	You paid $6,000 in rent on the warehouse building for the month of March.
6.	You paid $6,850 to an insurance company for fire and liability insurance for a period of one year beginning April 1, 2016.
7.	He paid $114,000 on account for the merchandise purchased at 3.
8.	Collected $85,500 from clients on account.
9.	Recorded depreciation expense of $1,700 per month on the equipment.

Analyze each transaction and show the effect of each on the accounting equation for a corporation.

Answer rating: 100% (QA)

1 Issued 44000 common shares in exchange for 440000 in cash Assets Cash 440000 Equity Common stock 4... View the full answer