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ACCT/382 ACCT382 ACCT 382 Week 2 Chapter 2 Homework

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ACCT 382 Week 2 Chapter 2 Homework There may be chances that the figures given in our question and your question doesn’t matches. Don’t worry, we are here to help you. Just write to us at studentwhiz@gmail.com and your answer is with you in no time. Question 1 The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013. 7. Paid $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of $1,000 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.) Question 2 The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. a. Issued 30,000 shares of common stock in exchange for $300,000 in cash. b. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed. c. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. d. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. e. Paid $5,000 in rent on the warehouse building for the month of March. f. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2013. g. Paid $70,000 on account for the merchandise purchased in transaction c. h. Collected $55,000 from customers on account. i. Recorded depreciation expense of $1,000 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.) Question 3 Listed below are several terms and phrases associated with the accounting processing cycle. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. List A List B 1. Source documents a. Record of the dual effect of a transaction in debit/credit form. 2. Transaction analysis b. Internal events recorded at the end of a reporting period. 3. Journal c. Primary means of disseminating information to external decision makers. 4. Posting d. To zero out the owners’ equity temporary accounts. 5. Unadjusted trial balance e. Determine the dual effect on the accounting equation. 6. Adjusting entries f. List of accounts and their balances before recording adjusting entries. 7. Adjusted trial balance g. List of accounts and their balances after recording closing entries. 8. Financial statements h. List of accounts and their balances after recording adjusting entries. 9. Closing entries i. A means of organizing information: not part of the formal accounting system. 10. Post-closing trial balance j. Transferring balances from the journal to the ledger. 11. Worksheet k. Used to identify and process external transactions. Question 4 Indicate whether a debit will increase (I) or decrease (D) each of the following accounts listed in items 1 through 16: Increase (I) or Decrease (D) A

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