Answer:
Wainwright Corporation
1. T-accounts:
Cash
Account Titles Debit Credit
Common stock $400,000
Equipment $15,000
Rent expense 6,000
Prepaid Insurance 7,000
Accounts Payable 80,000
Accounts Receivable 65,000
Balance $357,000
Accounts Receivable
Account Titles Debit Credit
Sales Revenue $170,000
Cash $65,000
Balance 105,000
Inventory
Account Titles Debit Credit
Accounts Payable $98,000
Cost of goods sold $80,000
Balance 18,000
Prepaid Insurance
Account Titles Debit Credit
Cash $7,000
Equipment
Account Titles Debit Credit
Cash $15,000
Notes Payable 35,000
Balance $50,000
Accumulated Depreciation
Account Titles Debit Credit
Depreciation expense $2,000
Common stock
Account Titles Debit Credit
Cash $400,000
Notes Payable
Account Titles Debit Credit
Equipment $35,000
Accounts Payable
Account Titles Debit Credit
Inventory $98,000
Cash $80,000
Balance 18,000
Sales Revenue
Account Titles Debit Credit
Accounts Receivable $170,000
Cost of goods sold
Account Titles Debit Credit
Inventory $80,000
Rent Expense
Account Titles Debit Credit
Cash $6,000
Depreciation Expense
Account Titles Debit Credit
Acc. depreciation $2,000
2. Trial Balance as at March 31, 2018
Account Titles Debit Credit
Cash $357,000
Accounts receivable 105,000
Inventory 18,000
Prepaid Insurance 7,000
Equipment 50,000
Accumulated depreciation $2,000
Common stock 400,000
Notes payable 35,000
Accounts payable 18,000
Sales revenue 170,000
Cost of goods sold 80,000
Rent Expense 6,000
Depreciation expense 2,000
Total $625,000 $625,000
Explanation:
a) Data and Analysis for the month of March 2018:
1. Cash $400,000 Common stock $400,000
2. Equipment $50,000 Cash $15,000 Notes Payable $35,000
3. Inventory $98,000 Accounts Payable $98,000
4. Accounts Receivable $170,000 Sales Revenue $170,000
4. Cost of goods sold $80,000 Inventory $80,000
5. Rent expense $6,000 Cash $6,000
6. Prepaid Insurance $7,000 Cash $7,000
7. Accounts Payable $80,000 Cash $80,000
8. Cash $65,000 Accounts Receivable $65,000
9. Depreciation expense $2,000 Accumulated Depreciation $2,000
