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(Solved): The following transactions occurred during March 2027. The company operates a wholesale warehouse. I ...
The following transactions occurred during March 2027. The company operates a wholesale warehouse.
Issued 40,000 shares of no-par common stock in exchange for $400,000 in cash.
Purchased equipment at a cost of $60,000. Cash of $15,000 was paid and a note payable to the seller was signed for the balance
owed.
Purchased inventory on account at a cost of $122,000. The company uses the perpetual inventory system.
Sold goods to customers on account for $170,000. The cost of the goods sold was $102,000.
Paid $5,500 in rent on the warehouse building for the month of March.
Paid $6,550 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2027.
Paid $102,000 on account for the inventory purchased in transaction 3.
Collected $76,500 from customers on account.
Required:
Analyze each transaction and show the effect of each on the expanded accounting equation for a corporation.
Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.