Inclassactivity-8-24-09 - 5. Paid $20,000 in rent on the...

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ACCY 301 Lab In-Class Activity A – Transaction Analysis Monday, August 24 The following transactions occurred during April 2009, for the Unisale Corporation. The company owns and operates a wholesale warehouse. 1. Issued 100,000 shares of common stock in exchange for $800,000 in cash. 2. Purchased equipment at a cost of $60,000. $15,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $270,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $360,000. The cost of the goods sold was $210,000.
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Unformatted text preview: 5. Paid $20,000 in rent on the warehouse building for the month of April. 6. Paid $15,000 to an insurance company for comprehensive insurance for a two-year period beginning May 1, 2009. 7. Paid $180,000 on account for the merchandise purchased in 3. 8. Collected $190,000 from customers on account. 9. Recorded depreciation expense of $2,000 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the accounting equation for a corporation. Example: Assets = Liabilities + Paid-in Capital + Retained Earnings 1. + 800,000(Cash) + 800,000(Capital stock)...
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This note was uploaded on 08/30/2009 for the course ACCY 301 taught by Professor Keller during the Fall '08 term at University of Illinois at Urbana–Champaign.

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