The following transactions occurred during the month of June 2018 for Stridewell Corporation. The company owns and
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Question:
The following transactions occurred during the month of June 2018 for Stridewell Corporation. The company owns and operates a retail shoe store.
- Issued 150,000 common shares in exchange for $750,000 in cash.
- She purchased furniture and accessories at a cost of $121,250. $48,500 was paid in cash and a promissory note was signed for the balance due.
- Inventory purchased on account at a cost of $300,000. The company uses the perpetual inventory system.
- Credit sales for the month totaled $510,000. The cost of goods sold was $255,000.
- He paid $7,000 in rent on the store building for the month of June.
- You paid $3,600 to an insurance company for fire and liability insurance for a period of one year beginning June 1, 2018.
- He paid $216,750 on account for the merchandise purchased at 3.
- Collected $102,000 from customers on account.
- It paid shareholders a cash dividend of $7,500.
- A depreciation expense of $2,425 per month was recorded on furniture and fixtures.
- Recorded the amount of prepaid insurance that expired in the month.
Required:
Prepare journal entries to record each of the transactions and events listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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