Exercise 2-1 Transaction analysis [LO2-1]

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

1.	Issued 54,000 shares of common stock in exchange for $540,000 in cash.
2.	Purchased equipment at a cost of $88,000. $22,000 cash was paid and a note payable was signed for the balance owed.
3.	Purchased inventory on account at a cost of $164,000. The company uses the perpetual inventory system.
4.	Credit sales for the month totaled $240,000. The cost of the goods sold was $144,000.
5.	Paid $7,250 in rent on the warehouse building for the month of March.
6.	Paid $7,600 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016.
7.	Paid $144,000 on account for the merchandise purchased in 3.
8.	Collected $108,000 from customers on account.
9.	Recorded depreciation expense of $2,200 for the month on the equipment.

Required:

Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.)

Assets = Liabilities + Paid in Capital + Retained Earnings

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10.