E 2%u20134: Journal entries

The following transactions occurred during the month of June 2013 for the Stridewell Corporation. The company owns and operates a retail shoe store.

• 1. Issued 100,000 shares of common stock in exchange for $500,000 cash.
• 2. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed.
• 3. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.
• 4. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.
• 5. Paid $6,000 in rent on the store building for the month of June.
• 6. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2013.
• 7. Paid $120,000 on account for the merchandise purchased in 3.
• 8. Collected $55,000 from customers on account.
• 9. Paid shareholders a cash dividend of $5,000.
• 10. Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.
• 11. Recorded the amount of prepaid insurance that expired for the month.

Required:

Prepare journal entries to record each of the transactions and events listed above.