The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 20,000 shares of no-par common stock in exchange for $200,000 in cash. Purchased equipment at a cost of $20,000. Cash of $5,000 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $62,000. The company uses the perpetual inventory system. Credit sales for the month totaled $70,000. The cost of the goods sold was $42,000. Paid $3,000 in rent on the warehouse building for the month of March. Paid $5,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $42,000 on account for the inventory purchased in transaction 3. Collected $31, 500 from customers on account. Recorded depreciation expense of $500 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.

The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 20,000 shares of no-par common stock in exchange for $200,000 in cash. Purchased equipment at a cost of $20,000. Cash of $5,000 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $62,000. The company uses the perpetual inventory system. Credit sales for the month totaled $70,000. The cost of the goods sold was $42,000. Paid $3,000 in rent on the warehouse building for the month of March. Paid $5,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $42,000 on account for the inventory purchased in transaction 3. Collected $31, 500 from customers on account. Recorded depreciation expense of $500 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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