Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following transactions occurred during march 2

The following transactions occurred during March 2024 for the Wainwright Corporation. The company owns and...

50.1K

Verified Solution

Question

Accounting

The following transactions occurred during March 2024 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

  1. Issued 36,000 shares of common stock in exchange for $360,000 in cash.
  2. Purchased equipment at a cost of $52,000. $16,000 cash was paid and a note payable to the seller was signed for the balance owed.
  3. Purchased inventory on account at a cost of $102,000. The company uses the perpetual inventory system.
  4. Credit sales for the month totaled $126,000. The cost of the goods sold was $76,000.
  5. Paid $5,600 in rent on the warehouse building for the month of March.
  6. Paid $6,600 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
  7. Paid $76,000 on account for the merchandise purchased in 3.
  8. Collected $61,000 from customers on account.
  9. Recorded depreciation expense of $1,600 for the month on the equipment.

Required:

  1. Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity).
  2. Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $46,000.
Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The negative result for acetylcholine receptor antibodies rules out ____________ ___________ as a diagnosis. please fill in...

Medical Sciences
Q

The stapes (ear bone) directly vibrates the: A. oval window B. hair cells C. eardrum (tympanic membrane) D. noxiceptors E. otolith F....

Medical Sciences
Q

Superior rectus muscle elevates the eye True False

Medical Sciences
Q

home / study / business / operations management / operations management questions and answers / corning...

General Management
Q

On the basis of your research and findings your paper should address the following: Do a...

Accounting
Q

Q5 The lineage that produced chimpanzees and humans split from other primates roughly 30 million...

Biology
Q

Select all that apply.The equation of a line can be found for which situations?Two points...

Basic Math
Q

Evaluate the expression when x 3 and y 4 x 2y

Algebra
Q

Based on the information provided below, what is the current tax charge that would be...

Accounting
Q

A __________________________ is used by the cost accounting department to enter the cost of direct...

Accounting
Q

An equity analyst from Jefferies & Co. expects Johnson & Johnson (NYSE: JNJ) current annual...

Finance
Q

PLEASE ROUND CORRECTLY Bond prices. Price the bonds from the...

Finance