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The following transactions occurred during March 2018 for the Wainwright Corporation.
The company owns and operates a wholesale warehouse. Issued 42,000 shares of common stock in exchange for $420,000 in cash.
Purchased equipment at a cost of $64,000. $16,000 cash was paid and a note payable was signed for the balance owed.
Purchased inventory on account at a cost of $128,000. The company uses the perpetual inventory system.
Credit sales for the month totaled $180,000. The cost of the goods sold was $108,000.
Paid $5,750 in rent on the warehouse building for the month of March.
Paid $6,700 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.
Paid $108,000 on account for the merchandise purchased in 3.
Collected $81,000 from customers on account.
Recorded depreciation expense of $1,600 for the month on the equipment.
Prepare journal entries to record each of the transactions listed above.
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